Binance hack losses covered at $6bn, reopening due Sunday
Binance, the world’s biggest cryptocurrency exchange, said it has covered $6 billion of the $6.3bn stolen from its platform by using company money to buy replacement tokens, after a hack that US officials said was carried out by the North Korean state-sponsored unit TraderTraitor. The statement, posted on X on Saturday, marks the company’s fullest account yet of how it plans to absorb the loss without passing it to customers. Dawn reported the details.
Binance said on X on Saturday: “We had already covered $6B of the impacted amount of the hacked loss.” The company had earlier said it had covered 90% of the stolen funds. The remaining amount, now less than 10%, consists of less liquid assets that may take longer to source in the required amounts. The last portion cannot be replaced as quickly as the main holdings.
Feature Pakistan reported earlier on November 1 on the FBI attribution of the hack to TraderTraitor. The new statement from Binance adds the company’s own response to that attribution: how much it has covered, where the money came from, and when customers can expect withdrawals to reopen.
FBI attribution and North Korea’s denial
The FBI said on Saturday that TraderTraitor was responsible for the hack. FBI officials said unit members were observed converting stolen assets into ethereum, and the bureau expects further laundering through related technology. North Korea has for years denied using state-linked cyber units for espionage, financial theft and revenue generation. Its mission in Geneva and its embassy in China did not respond to requests for comment.
Analysts had previously blamed North Korea for the hack and said it could be the largest financial heist of all time. That assessment explains the scale of the official response and the urgency of Binance’s damage control.
How Binance paid for the loss
The money spent re-buying tokens came from part of its $1bn Secure Asset Fund for Users, known as Safu, a bitcoin reserve held to protect customers in security breaches, plus some money from the Futures Insurance Fund and corporate treasury, the company said on X. Co-chief executive Yi He said on Saturday that 50% of Safu funds would be used. The company is committing to replenishing the fund to return it to about $1bn.
Binance said it set aside around $6.34bn of company funds internally to cover losses, and it has repeatedly said it would bear the financial impact itself. The use of Safu is significant because the fund exists for exactly this purpose: to shield users when a breach occurs. Drawing on half of it, while pledging to rebuild it, signals both the scale of the theft and the company’s intent to keep the safety net intact for the future.
Frozen assets and the return of withdrawals
Binance is working with industry partners to freeze some of the affected assets, with about $3bn located as of Friday. Freezing assets does not by itself return stolen tokens, but it limits how much the attackers can move or convert, and it supports the FBI’s expectation of further laundering attempts through related technology.
Crypto prices fell on Friday while Binance sought to reassure customers that funds were safe. After the hack, the exchange stopped allowing customer withdrawals, but said on Saturday it was still on track to reopen withdrawals on Sunday. For customers locked out since the breach, that timetable is the most immediate test of the company’s recovery plan.
Co-chief executive Richard Teng said the breach was a “complex attack” involving a compromised laptop and malicious software designed to delete evidence, making it harder to trace and investigate. The description helps explain why attribution and asset recovery have taken time, and why investigators expect laundering efforts to continue even as Binance replaces the stolen tokens.
Proof of reserves snapshot
Frequently asked questions
How much of the stolen funds has Binance covered?
Binance said it has covered $6bn of the $6.3bn stolen, using company money to buy replacement tokens, with less than 10% in less liquid assets still to source.
Who does the FBI blame for the hack?
The FBI said on Saturday that the North Korean state-sponsored unit TraderTraitor was responsible for the hack.
Where did the replacement money come from?
The money came from part of the $1bn Secure Asset Fund for Users, plus some money from the Futures Insurance Fund and corporate treasury, with the company pledging to replenish Safu to about $1bn.
When will Binance reopen withdrawals?
Binance said on Saturday it was still on track to reopen customer withdrawals on Sunday, after stopping withdrawals following the hack.
