Binance said it reserved over $6.34 billion of company funds to cover hacked losses, found more breach points and aims to restart withdrawals before Sunday.
Key Facts
Binance said it has reserved over $6.34 billion of company funds to cover losses from a hack of its own hot wallet, with $5 billion already held in the exact tokens affected.
Around $3 billion of the stolen assets has been frozen with help from industry partners, the exchange said.
Co-CEO Richard Teng said Binance hopes to restart withdrawals before its Sunday deadline and will publish a full Proof of Reserves report by Monday.
Binance said it has reserved more than $6.34 billion of company funds to cover losses from a hack of its hot wallet, and expects to restart withdrawals before a Sunday deadline after rebuilding its withdrawal service.
The update sets out how the exchange plans to make users whole, while deposits continue and withdrawals stay paused.
"Binance has already reserved over $6.34B of company funds to cover this incident. $5B of these funds are already held in the exact token assets that were impacted," the exchange said on X on Friday.
How Binance Plans to Cover the Hacked Assets
Binance is buying the remaining tokens through market and over-the-counter channels to match the assets taken, which can take longer for tokens with low liquidity, the exchange said. The $6.34 billion does not include frozen or protected assets.
"What was affected in this incident was Binance's own hot wallet," co-CEO Richard Teng said in a video update. He said the vast majority of user assets sit in cold wallets.
Binance said about $3 billion has been frozen with help from industry partners, up from a verified $2.54 billion it reported late on Thursday.
What Binance Has Said About the Breach
Binance initially said the incident may have involved a compromised laptop, but later said its investigation had uncovered additional points of breach. "This was a complex attack," the exchange said.
Teng said the attacker used EIP-7702 to obtain on-chain execution approval over a hot wallet, adding that the delegation did not pass through Binance's normal approval controls. He said the attacker also used a self-destruct mechanism that destroyed tooling and traces.
The exchange is rebuilding its withdrawal service and will not switch it back on until it passes testing, Teng said. Binance is also running a company-wide security review and working with law enforcement to trace stolen funds.
"We will be sharing a full Proof Of Reserves report by Monday," Teng said, adding that Binance hopes to give an initial view before then. Proof of reserves reports let users check that an exchange holds the assets it owes them.
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