Binance Sets Aside $6.34 Billion to Cover Losses From Record Crypto Hack
Binance says it has allocated more than $6.34 billion to address losses from a record-breaking cryptocurrency theft, including $5 billion already held in the specific digital assets affected by the attack. The exchange says it is acquiring the remaining tokens to ensure impacted customer balances can be restored on a one-for-one basis.
In an update shared with CoinDesk, Binance said the reserves were assembled using company resources. The exchange is purchasing the outstanding assets through public markets and over-the-counter transactions to match the cryptocurrencies taken from its wallets.
The stated $6.34 billion allocation excludes assets that have already been frozen or otherwise protected. Binance said industry partners had helped freeze $3 billion and that efforts to recover those funds were continuing alongside law enforcement agencies.
Binance Pledges to Cover Confirmed Shortfalls
A Binance spokesperson said the company would use its own resources to cover confirmed losses and make its reserves publicly verifiable through its Proof of Reserves system.
“These figures do not include frozen or protected assets. Currently, $3 billion has been frozen, with thanks to our industry partners. We are working with partners and law enforcement to recover the frozen assets. We will continue to use company resources to cover confirmed shortfall… Ultimately, all user funds will be verified publicly through our Proof of Reserves. We will weather this storm,” the spokesperson said in an email.
The exchange is also relying on its Secure Asset Fund for Users, known as SAFU. The emergency protection fund has typically held around $1 billion in Bitcoin and is designed to help Binance respond to incidents affecting customer assets.
How the Binance Hack Unfolded
The theft occurred late Thursday, when attackers drained an estimated $6.3 billion from Binance hot wallets across multiple blockchains. The outflows reportedly unfolded in a burst lasting about 20 minutes and involved Bitcoin, Ether, USDT, USDC and smaller tokens.
Binance initially attributed the incident to a compromised laptop belonging to a DevOps engineer. The breach allegedly allowed attackers to submit unauthorized withdrawal requests through internal systems. The exchange later reported finding additional points of exploitation but did not disclose further technical details.
Binance also said it had not found evidence that wallet private keys were stolen. That distinction has not eliminated questions about how the attackers gained access to withdrawal processes or how the additional exploit points were used.
Investigators Trace Sophisticated Laundering Activity
Blockchain analytics firms Chainalysis and TRM Labs linked the attack with high confidence to a North Korean hacking group associated with previous large-scale cryptocurrency thefts. Their assessment cited the operation’s speed and sophistication.
Chainalysis also reported laundering behavior it said it had not previously observed. Thousands of transactions were being processed in a short period, suggesting that automated scripts were moving the stolen funds rather than operators handling transfers manually.
Instead of sending assets directly to a final destination, the funds were repeatedly circulated through numerous addresses, including transfers back to wallets that had appeared earlier in the transaction chain.
One recurring pattern involved multiple addresses receiving exactly 1 TRX before accepting larger amounts and transferring them onward almost immediately. Chainalysis described the pattern as a programmatic effort to obscure the funds’ movement at scale.
Aidan Larkin, co-founder and CEO of seized-asset company Asset Reality, described the method as “agentic money laundering.”
Binance says it will continue working with industry partners and law enforcement to recover frozen assets while using corporate resources to cover confirmed shortfalls. The company has also pledged to verify user funds publicly through its Proof of Reserves process.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.