Binance Covers $6.34 Billion Hack Using Company Funds

Binance stated on Thursday that it finalized the full coverage of the $6.34 billion security incident that occurred on October 29. Two weeks after the largest crypto theft on record, the exchange confirmed that impacted assets have been replaced from its own books, even as platform withdrawals continue to reopen in a phased manner. Many users tracking the situation have naturally looked up details regarding how Binance hacked assets are managed and how the exchange responds.

In a formal announcement, the exchange detailed that it committed over $6.34 billion in corporate funds to acquire the affected tokens through open market and over-the-counter channels. This coverage drew from a partial deployment of the Secure Asset Fund for Users, excess futures insurance funds, and corporate treasury reserves. Furthermore, Binance pledged to replenish the user protection fund to approximately $1 billion following the draw. Assets that are no longer listed on the exchange will be handled through its standard delisting process while ensuring user holdings are fully covered.

Binance has fully covered the record $6.34 billion security breach using internal company funds and reserves.

Binance Proof-of-Reserves Snapshot

To demonstrate backing, the platform published a new proof-of-reserves snapshot at midnight UTC on November 12, encompassing 198 tokens compared to just 10 tokens in the previous snapshot published right after the breach. However, users cannot immediately verify the data independently. Due to heavy computational workloads, the complete zero-knowledge proof will take between 40 and 50 hours to generate. Once ready, holders will be able to confirm that their assets are backed at a minimum ratio of one to one.

The update does not mean the platform has fully resumed normal operations at once. Withdrawal reopenings continue in a phased schedule that began on November 1. Moreover, the latest announcement does not specify the identity of any attacker or state how much of the stolen funds have been recovered by authorities.

Why it matters

This development marks a crucial milestone for the exchange's user base following the largest digital asset theft in history. By replacing missing tokens through internal reserves rather than waiting for coin recoveries, the platform aims to restore customer confidence while navigating a gradual return to full operational capacity across its withdrawal networks.