Binance said it has covered 90 percent of the losses from a cyberattack that stole assets from the exchange. The company said it is buying assets in the market and over the counter to cover the remaining portion. It also plans to reopen withdrawals on Sunday, 1 November.
Compensation and frozen assets
Binance had previously said the breach was estimated at 6.3 billion dollars, possibly among the largest in history. The company said it has set aside 6.34 billion dollars from company resources to compensate affected users. Roughly 3 billion dollars of assets have been frozen.
The company said the financial burden of the stolen funds will fall on Binance, not on its users. The uncovered 10 percent consists of lower-liquidity tokens outside the 10 named assets, according to the record. Binance had covered 80 percent of the affected amount before the latest update.
Withdrawals and security review
Yi He, Binance co-founder and co-CEO, said withdrawals had been disabled until the environment is confirmed safe. Initial reviews suggest attackers may have made unauthorised withdrawals through a compromised laptop belonging to an engineer.
Binance.US said it was not affected by the incident. The exchange also published a new proof-of-reserves view, which it said lets users verify at least 1:1 backing using a zero-knowledge proof.
Source: Binance
