Binance said it had replaced 90% of assets affected by the estimated $6.3 billion hack, with token purchases continuing. The October 31 statement also outlined withdrawal and reserve-verification plans. The exchange said customers would not bear the losses.
The update followed an October 30 commitment of more than $6.34 billion in company funds. At that stage, about $5 billion was already held in the affected cryptocurrencies. Binance had put coverage at approximately 80% before the October 31 update.
The latest percentage involves the replacement of the assets being utilized to secure customer balances. It is distinct from the process of retrieving the stolen funds. Binance confirmed that it would continue buying tokens till they cover 100% for all affected assets.
What Remains to Be Replenished
The exchange stated that the 10 mentioned cryptocurrencies are fully supported by reserves at this point. These include BTC, ETH, USDT, BNB, and SOL. This list also includes USDC, XRP, USD1, RLUSD, and ZEC.
Also Read: Crypto Hack Losses Reach 89% North Korea Share, Chainalysis Finds
It has been stated by Binance that the remaining 10% consists of cryptocurrencies that are not on the aforementioned list. They do not have much liquidity due to which large quantities cannot be easily sourced.
How Binance Is Funding the Replacement Assets
The company has noted corporate treasury and parts of two reserve funds as its financial resources. These are the Secure Asset Fund for Users (SAFU) and the Futures Insurance Fund. SAFU is a reserve fund set up in July 2018 to shield users in case of emergencies.
According to Binance’s Frequently Asked Questions (FAQ), the SAFU funds will assist in buying outstanding tokens. This move is being undertaken despite the fact that Bitcoin has satisfied the company’s reserve requirements. Binance also pledged to replenish the SAFU reserve fund to around $1 billion.
On October 31, another company update revealed a transfer of 7,499 BTC from SAFU. It is associated with an easily visible transaction on the blockchain.
According to Binance, the amount withdrawn from the company’s Futures Insurance Fund exceeded the required amount as per the risk management strategy of the company. However, the remaining balance remained higher than the required amount.
The insurance fund typically aids in settling deficits arising from bankruptcy of future positions and assists in minimizing auto-deleveraging, which entails a reduction in positions of other traders in case losses are not covered. The exchange notes that this fund is owned by the company and not the users.
When Withdrawals and Reserve Proof Are Expected
Binance kept November 1 as its date to resume withdrawals. As per its announcement made on October 31, more information would be released following the confirmation of the arrangement. This was an opening schedule and not a confirmation that withdrawals have resumed.
As mentioned in the earlier security announcement, deposits and other services that are not affected will continue to operate. The resumption of services would be contingent upon the completion of the security checks.
In another announcement, Binance made available a new proof of reserves snapshot as of October 31. According to it, the results have been shared on its reserves website. The complete cryptographic proof is expected by November 3.
It is expected that the creation of proof would take around 40 to 50 hours. The process of verifying the proof allows users to verify whether the balance appears in the liability statement.
FBI Links $6B Binance Hack to North Korea
The FBI pointed out that the cyber theft of more than $6 billion worth of cryptocurrencies at Binance was carried out by North Koreans. They named the activity TraderTraitor. This has been previously identified as being conducted by that entity by TRM Labs and Chainalysis.
The FBI, U.S. Secret Service, and IRS Criminal Investigation saw the conversion of the stolen funds mostly into ETH. They saw an expected laundering through DeFi and instant swap platforms.
They asked THORNode and RPC node owners to blacklist the transaction addresses or their derivatives connected to the laundering activities. The request was made for instant exchanges, DeFi exchanges, blockchain analytics companies, and other virtual assets.
The FBI also provided some of the addresses controlled by or connected to the hackers. These addresses are holding or have been holding the hacked assets.
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Arslan Tabish
Arslan Tabish is a Technical Reporter and Market Analyst at Tron Weekly with over five years of experience covering cryptocurrency markets and blockchain developments. His reporting focuses on Bitcoin, Ethereum, altcoins, and decentralized finance, alongside NFTs, crypto regulation, policy, and Web3 innovations.
Arslan covers blockchain technology, Layer 2 scaling solutions, and emerging use cases, including AI-driven crypto applications, while delivering clear market analysis on how technical and regulatory developments impact digital asset markets. His work is designed for both beginners and experienced readers, offering accurate, easy-to-understand reporting without speculation or investment guidance.
