Binance restores backing for 90 percent of stolen hack funds

Cryptocurrency exchange Binance has restored backing for 90 percent of the assets stolen in a record 6.3 billion dollar cyber heist, CNBC Tech and CoinDesk both report. The Federal Bureau of Investigation, working alongside the United States Secret Service and the Internal Revenue Service, determined that North Korea was responsible for the theft, according to reports from CNBC Tech and The Information. DealBook and The New York Times both reported on the frantic 24 hours at the world's largest crypto exchange following the breach. [1][2][3][4][7]

Binance stated that it will continue buying the remaining stolen token assets through market and over-the-counter channels until all affected tokens are fully covered, CNBC Tech reported. CoinDesk reported that the exchange is absorbing all losses through corporate funds, futures reserves, and its Secure Asset Fund for Users to keep customer balances intact. CNBC Tech, NBC News, and Forbes all noted that the 6.3 billion dollar security breach stands as the largest crypto theft in history. [3][4][9][10]

Blockchain partners helped Binance freeze approximately 3 billion dollars of the affected assets on-chain, according to Pulse 2.0. CoinDesk noted that the incident has renewed debate within the digital asset industry over whether centralization serves as a primary security advantage or a critical point of weakness. [5][6]

As FTMQ Startups reported earlier, Binance reserved corporate funds to fully compensate user losses after attackers bypassed security controls and erased evidence. Chief Executive Officer Richard Teng previously stated that the company aimed to restart withdrawals by Sunday and release proof of reserves on Monday. CNBC Tech and Forbes confirmed that Binance plans to resume user withdrawals on Sunday, subject to final security checks. [3][9][14]