Binance, the world's largest cryptocurrency exchange, announced it has reserved $6.34 billion in company funds to cover losses from a security breach that resulted in over $6 billion in stolen assets. The incident, which occurred on Thursday, triggered approximately $1.5 billion in liquidations across the cryptocurrency market.
Less than 24 hours after the incident, Binance disclosed its recovery efforts through social media channels. The exchange stated it is working with law enforcement, blockchain intelligence firms, and industry partners to trace, freeze, and recover additional funds.
Asset Recovery and Reserve Breakdown
Of the $6.34 billion reserved, $5 billion is already held in the specific token assets that were impacted by the hack. Binance is completing purchases of additional affected tokens through over-the-counter and market channels to cover remaining losses.
The company acknowledged that acquiring some tokens may take longer due to low liquidity and OTC settlement timelines, without providing a specific date for resuming normal operations.
Industry Support and Frozen Assets
Binance highlighted the role of industry partners in containing the damage. Tether and Circle froze $3 billion in stablecoins related to the breach, assisting law enforcement recovery efforts.
The exchange stated it will use company resources to cover losses and continue working to recover stolen assets. Binance committed to updating the public on progress and verifying exchange assets through its Proof of Reserves program.
