Binance covers 90 percent of losses following record crypto hack

Cryptocurrency exchange Binance announced on Saturday that it has replaced 90 percent of the roughly 6.3 billion dollars in assets stolen during a record theft on Thursday. CNBC Tech, The Hill Tech, The Verge, and Gizmodo all reported that the exchange was forced to suspend deposits and withdrawals after funds began moving out of user wallets. Separately, CNBC Tech reported late Saturday that the FBI determined North Korea was responsible for the attack. [1][2][3][4][5][6][7][8][9]

Binance stated that it will cover the losses directly and will absorb the cost while purchasing remaining assets through market and over-the-counter channels until all tokens are 100 percent backed. CNBC Tech reported that major cryptocurrencies such as Bitcoin, Ethereum, USDT, BNB, Solana, USDC, XRP, USD1, RLUSD, and ZEC are now fully backed. The Verge reported that the remaining 10 percent of lost funds consists of less liquid tokens that will take longer to acquire. [1][3]

To limit damage from the breach, cryptocurrency firms froze around 3 billion dollars in stolen tokens, according to The Hill Tech and Gizmodo. Reuters reported through Gizmodo that Binance assured customers all stolen wallets are covered and user assets remain safe. Gizmodo reported on Friday that the exchange was targeting a resumption of withdrawals within approximately 48 hours, while CNBC Tech and The Verge noted that the platform plans to reopen withdrawals subject to security checks. [1][2][3][4]

Founded in 2017 by Changpeng Zhao, Binance is the largest cryptocurrency exchange by daily trading volume. The company was initially based in China before relocating several times, and it operates without an official corporate headquarters. [10][12]