Binance Says It Holds $5B in Matching Tokens to Cover Hack Losses
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Binance says it holds more than $6.34 billion in company funds to cover losses from its recent hack, with $5 billion already in the same tokens stolen. This was revealed by a Binance spokesperson who stated, "The $5 billion is held in the exact token assets required. These assets are in Binance custody."
Key Points:
- The exchange will include these assets in its next proof-of-reserves report.
- Binance provides weekly reports on its company funds to the Financial Services Regulatory Authority (FSRA).
- Blockchain intelligence firm TRM Labs attributed the $6.3 billion hack to North Korean hacking group TraderTraitor.
- Approximately $3 billion in affected assets have been frozen with blockchain partners' help.
Related:
- EIP-7702 didn’t cause Binance hack, but may have amplified losses
- Binance hack is the largest cryptocurrency theft on record
Verifications and Gaps:
- CertiK awaits more details to verify Binance’s $5 billion holdings.
- CertiK CEO Ronghui Gu estimated that frozen assets and Binance’s $1.17 billion emergency fund could cover about 66% of reported losses, leaving a potential $2.1 billion gap.
Binance Founders' Response:
- Binance founder Changpeng Zhao stated that the company’s SpaceX holdings, worth over $1 billion, could cover the losses.
- Binance co-founder Yi He claimed that the exchange’s annual revenue is sufficient to cover the hack losses and that selling its SpaceX stake is not necessary.