Binance covers $6.34bn hack losses and expands proof of reserves
The exchange used corporate funds, SAFU, and insurance reserves to cover lost assets while publishing an updated snapshot of 198 tokens.
Key takeaways
- 1Binance fully replaced $6.34 billion in assets lost during an Oct. 29 security incident using company capital.
- 2Funding was drawn from SAFU, the futures insurance fund, and corporate treasury reserves.
- 3A new proof-of-reserves snapshot recorded on Nov. 12 covers 198 digital tokens.
- 4Cryptographic zero-knowledge proofs require 40 to 50 hours to generate before user verification opens.
- 5Withdrawals continue to resume in phases after initially reopening for bitcoin on Nov. 1.
Binance said it has completed replacing the $6.34 billion in customer assets lost in an Oct. 29 security incident using internal reserves, marking the end of a two-week buyback process following the largest theft in crypto history.
The exchange purchased the affected tokens through spot market and over-the-counter channels to restore user balances. Funding came from a partial draw on the Secure Asset Fund for Users, surplus capital from the futures insurance fund above mandatory risk thresholds, and corporate treasury reserves. Binance said it will top up the emergency protection fund, known as SAFU, back to its standard baseline of approximately $1 billion.
A small number of affected tokens that Binance had previously delisted will be managed under the exchange's standard delisting framework, with account holders receiving full coverage for their holdings. The update marks the first formal confirmation from Binance that all lost customer assets have been fully replaced on its balance sheet, following earlier updates where 98 percent of lost funds had been replenished.
The platform also published a new proof-of-reserves snapshot recorded at 00:00 UTC on Nov. 12, covering 198 digital tokens. The update expands token coverage beyond an initial snapshot taken on Oct. 31 that included 10 major tokens while the exchange managed the immediate aftermath of the breach.
Binance said generating the corresponding zero-knowledge cryptographic proofs for all 198 tokens requires 40 to 50 hours of processing time due to heavy computational workloads. Once the computation completes, platform users will be able to verify independently that their account balances are backed by exchange holdings at a minimum ratio of 1:1.
Withdrawals across the platform remain on a phased rollout schedule. Binance first reopened bitcoin transfers on Nov. 1 before gradually extending access to additional blockchain networks. The original breach, detailed in a Nov. 3 incident report, occurred after a fake job interview and a compromised developer tool enabled attackers to access and drain several hot wallets. Binance did not state whether any stolen assets have been recovered or identify the perpetrators behind the breach.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.