Binance sets aside $6.34B in company funds to cover hack losses. Specifically, $5 billion is already held in the same tokens that were stolen.
“The $5 billion is held in the exact token assets that are required,” a Binance spokesperson told Cointelegraph. “These assets are in Binance custody.”
Why Binance sets aside $6.34B matters
However, Binance did not disclose when it acquired the assets. Additionally, the spokesperson declined to share wallet addresses, citing security reasons. Nevertheless, the holdings will appear in the exchange’s next proof-of-reserves report.
Binance said it provides weekly company-fund reports to Abu Dhabi’s FSRA. That requirement predated the hack.
The exchange has not confirmed which tokens it still needs to buy. It also has not said when those purchases will finish. Moreover, it has not disclosed how much stolen crypto has been recovered.
Hack details and frozen assets
Binance confirmed Friday that it suffered a $6.3 billion hack. That is the largest cryptocurrency theft on record. TRM Labs said funds were drained from Binance wallets across 10 blockchains on Thursday. The firm attributed the attack to North Korean group TraderTraitor.
Binance said about $3 billion in affected assets had been frozen with partner help. Those assets were excluded from the company funds set aside to cover losses.
CertiK awaits more details to verify $5B holdings
CertiK said it needs more information from Binance. The firm wants to assess whether the claimed $5 billion can be independently verified on-chain.
Earlier Friday, CertiK CEO Ronghui Gu estimated a $2.1 billion gap. He said frozen assets plus Binance’s $1.17 billion emergency fund cover about 66% of losses. That gap represents about 1.3% of Binance’s reported $165 billion in exchange reserves.
Founders cite revenue and existing holdings
Changpeng Zhao commented on Friday. He said Binance’s SpaceX holdings alone were worth more than $1 billion. That stake links to a $500 million investment in Elon Musk’s Twitter takeover.
Co-founder Yi He added that the exchange’s yearly revenue can cover the hack losses. Therefore, the company does not need to sell its SpaceX stake.
Zhao also said Binance accumulates listed tokens because customers can pay fees in them. Separately, he said Gulf, Binance’s Thailand partner, offered financial support.
Zhao stepped down as CEO in 2023. He later served four months in a US prison over anti-money-laundering violations. He remains a major Binance shareholder. Forbes estimated his fortune at about $115 billion.
Key takeaway
Binance sets aside $6.34B to cover losses. Of that, $5B sits in the exact stolen tokens. However, independent verification remains pending. Therefore, traders should watch the next proof-of-reserves report.