Binance replaces $5.7 billion of stolen crypto

Binance has replaced $5.67 billion of the cryptocurrency it lost in a recent breach. The world's largest digital asset exchange disclosed on Saturday that it had recovered 90% of the stolen value. This action follows a record-breaking hack that drained more than $6.3 billion from the platform.

The remaining 10% of the loss involves tokens with low liquidity. These assets may take longer to repurchase. Richard Teng, co-CEO of Binance, stated that the company intends to cover this remainder. He noted that users would not face the financial burden of the incident.

Analysts attributed the theft to North Korea. On Friday, Teng described the event as a complex attack. He said the perpetrators used a compromised laptop and malicious software. The software was designed to delete traces of the intrusion, which complicated the investigation.

Following the breach, Binance suspended customer withdrawals. The company reported on Saturday that it remained on track to restart those withdrawals on Sunday. To restore confidence, the exchange provided details on how it financed the recovery.

Binance allocated approximately $6.34 billion from its internal funds. The company used a portion of its $1 billion Secure Asset Fund for Users, known as SAFU. It also drew from its Futures insurance fund and its corporate treasury to buy the new tokens.

The exchange took a new asset snapshot at 2:00 a.m. Israel time on Saturday. This step is part of its proof-of-reserves process. Users holding specific assets, including Bitcoin, Ethereum, and Tether, will be able to verify their holdings. Binance said it will confirm that these ten listed tokens are backed at a minimum 1:1 ratio once the full proof is available.