Cryptocurrency exchange Binance says it has covered 90% of approximately $6.3 billion stolen from its hot wallets in what is believed to be the largest cryptocurrency hack on record.
In a recovery update, Binance stated it set aside more than $6.34 billion in company funds to address the loss. The exchange said all user holdings in Bitcoin, Ethereum, Tether, BNB, Solana, USD Coin, XRP, USD1, Ripple USD, and Zcash are now fully backed.
The exchange used portions of its Secure Asset Fund for Users (SAFU), its futures insurance fund, and corporate treasury to repurchase the stolen assets. Binance said it would absorb the financial impact rather than passing losses to users.
The remaining 10% consists of less liquid tokens outside the top ten, which Binance indicated may require additional time to acquire in the necessary quantities.
Binance reported that its hot wallets were compromised on October 29th at approximately 20:05 UTC. The FBI and private analytics firms identified North Korea's state-backed Lazarus Group as responsible for the attack, though North Korea has denied involvement.
Binance co-CEO Richard Teng stated the theft involved multiple individuals who used a self-destruct mechanism to conceal their tracks. Initial findings pointed to a compromised engineer's laptop, though subsequent analysis revealed additional breach points.
Approximately $3 billion of the stolen assets has been frozen with assistance from law enforcement and industry partners. Binance took a new proof-of-reserves snapshot on October 31st and indicated it remained on track to reopen withdrawals on November 1st.
