Binance, the world’s largest cryptocurrency exchange, says it has replenished approximately 90% of the digital assets stolen during a massive cyberattack that resulted in losses estimated at $6.3 billion.
The latest announcement marks a significant step in Binance’s recovery efforts following what has been described as the largest cryptocurrency theft ever recorded. According to the BBC, the exchange has repeatedly pledged to cover the full amount of the losses and has set aside more than $6.34 billion in company funds to restore the stolen assets.
However, the recovery process is not yet complete. Binance estimates that approximately 10% of the stolen assets remain to be replenished, with the remaining portion presenting additional challenges because some of the affected cryptocurrencies are difficult to obtain in large quantities.
The company explained that the remaining 10% consists primarily of cryptocurrencies with relatively low market liquidity. This means there may not be enough readily available tokens on the market to purchase the required quantities immediately without creating additional difficulties.
To address the shortage, Binance is working through both public cryptocurrency markets and over-the-counter (OTC) transactions. These arrangements allow large transactions to take place directly between parties rather than relying entirely on publicly available exchange orders.
These include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USD Coin (USDC), XRP, USD1, RLUSD and Zcash (ZEC).
How Binance Plans to Cover the $6.3 Billion Loss
Binance previously announced that it had set aside more than $6.34 billion in company resources to compensate for the stolen cryptocurrency.
One of the main sources is the Secure Asset Fund for Users (SAFU), Binance’s emergency protection fund established to help safeguard customers in exceptional circumstances, including security incidents.
The exchange also confirmed that it is using a portion of its Futures Insurance Fund, alongside assets held in its corporate treasury.
The Futures Insurance Fund is designed to support the platform’s risk-management system during periods of extreme market volatility. Binance said the remaining balance would continue to meet the requirements of its existing risk-management framework.
This distinction is particularly significant because cryptocurrency exchanges hold substantial amounts of digital assets on behalf of millions of users. A major security breach can raise immediate questions about whether customers will still be able to access the balances displayed in their accounts.
What Happened During the Massive Cyberattack?
The security incident took place on Thursday, October 29, when attackers managed to steal approximately $6.3 billion worth of cryptocurrency from Binance.
The breach affected the exchange’s hot wallet infrastructure, which consists of digital wallets connected to the internet and used to facilitate transactions and customer withdrawals.
Unlike cold wallets, which are kept offline for additional protection, hot wallets remain connected to online systems. This makes them essential for operating a major cryptocurrency exchange but also exposes them to certain cybersecurity risks.
Binance co-CEO Richard Teng described the incident as a sophisticated attack involving a compromised laptop and malicious software designed to erase evidence of its activities.
The exact technical details of the breach remain under investigation.
Blockchain analysis firms have also pointed to possible links with North Korean hacking group TraderTraitor, although the attribution has not been independently established as a definitive conclusion by Binance.
The scale of the incident has attracted considerable attention throughout the cryptocurrency industry, particularly because the estimated losses exceed those associated with several previous major exchange attacks.
Withdrawals and Customer Funds Remain a Priority
Following the discovery of the breach, Binance temporarily suspended customer withdrawals while it worked to secure its systems and assess the damage.
The exchange said on Saturday that it remained on schedule to resume withdrawal services on Sunday, November 1, although the specific arrangements were still being finalized.
Binance also published an updated snapshot of assets held on its platform as part of its proof-of-reserves process.
The company said the snapshot was taken on October 31 and that generating the full cryptographic verification would require approximately 40 to 50 hours of computing time. The completed proof was expected to become available on Tuesday, November 3.
Such verification systems are intended to give customers a way to independently check whether an exchange holds sufficient assets to support their account balances.
A Major Test for Confidence in the Cryptocurrency Industry
The incident represents a serious challenge for Binance, particularly given its position as the world’s largest cryptocurrency exchange by trading activity.
Although the company has moved quickly to replace the missing assets, the attack has renewed concerns about the security of centralized cryptocurrency platforms and the risks associated with holding large amounts of digital currency in internet-connected wallets.
With 90% of the assets already replenished, Binance has made substantial progress. However, the remaining recovery work will be closely watched by customers, investors and the wider cryptocurrency industry.
