Binance restores 90% of stolen crypto assets
What's the story
Binance, the world's largest cryptocurrency exchange, has announced that it has returned 90% of the crypto assets lost in a recent security breach. The company said it will absorb the financial impact of this theft itself and not pass on any losses to its customers. The exchange also confirmed that 10 major cryptocurrencies are now fully backed and said it is on track to resume withdrawals today.
Recovery plan
Binance replenished stolen assets using corporate treasury
Binance revealed that the replenishment of stolen assets includes funds from its corporate treasury and a portion of its futures insurance fund.
The exchange also plans to partially deploy its Secure Asset Fund for Users (SAFU) in the next 24 hours as it works to replace the remaining affected assets.
The company is buying the remaining stolen assets through crypto market transactions and over-the-counter (OTC) deals.
Customer assurance
Customers will not bear the financial consequences
Binance has assured its customers that they will not bear the financial consequences of the security breach.
"Binance will absorb the financial impact of these stolen funds, not our users," said the exchange.
The company also announced that its holdings in Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USD Coin (USDC), XRP, $1, Ripple USD (RLUSD), and Zcash (ZEC) are now fully backed at 100%.
Security measures
Binance took new snapshot of assets held on its platform
Binance also took a new snapshot of assets held on its platform as part of its proof-of-reserves process.
Users holding 10 listed tokens, BTC, ETH, USDT, BNB, SOL, USDC, XRP, $1, Ripple USD (RLUSD), and ZEC, will be able to verify that their assets were backed at a minimum 1:1 ratio once the full proof was available.
The exchange had suffered a massive security breach on October 29 with hackers stealing some $6.3 billion worth of cryptocurrency.