Binance says it holds $5B in matching tokens to cover hack losses

Binance said it has set aside more than $6.34 billion in company funds to cover losses from its hack, with $5 billion already held in the same tokens that were stolen. For PSPs and exchanges watching proof-of-reserves and treasury exposure, the useful detail is not the headline number but the mix: the company says the assets are already in custody and will show up in its next proof-of-reserves report.

1. Binance spokesperson told Cointelegraph that the exchange has “the exact token assets that are required” and that these assets are “in Binance custody.” Binance did not disclose when it acquired the assets.
2. The spokesperson declined to disclose wallet addresses, citing security reasons, but said the holdings will appear in the exchange’s next proof-of-reserves report, which shows the assets it holds to back customer balances.
3. Binance said it provides weekly reports on its company funds to the Financial Services Regulatory Authority (FSRA), the financial regulator of Abu Dhabi Global Market in the United Arab Emirates. The exchange said this requirement predated the hack.
4. The exchange has not said which tokens it still needs to buy, when those purchases will be completed, or how much stolen crypto has been recovered.
5. Binance confirmed that it suffered a $6.3 billion hack, the largest cryptocurrency theft on record. Blockchain intelligence firm TRM Labs said funds were drained from Binance wallets across 10 blockchains on Thursday and attributed the attack to North Korean hacking group TraderTraitor. Binance said about $3 billion in affected assets had been frozen with help from blockchain partners, and those assets were excluded from the company funds set aside to cover losses.