Binance co-founder Changpeng Zhao (@cz_binance) says the exchange has allocated all the funds needed to cover the $6.3 billion stolen in last week's hack, and that only conversions into small
Binance co-founder Changpeng Zhao (@cz_binance) says the exchange has allocated all the funds needed to cover the $6.3 billion stolen in last week's hack, and that only conversions into smaller, less liquid tokens remain. Binance (@binance) has also begun a second round of withdrawal reopenings across nine blockchain networks.
In a post on November 2, Zhao said Binance had allocated 100% of the required funds and that the remaining 5% was a matter of converting into some small coins, which takes time, according to Coinpedia. The outstanding task is therefore sourcing thinly traded assets, not a funding gap.
Binance has said it replaced about 95% of the stolen assets using company resources. Reporting by CNBC indicates the exchange partially tapped its Secure Asset Fund for Users (SAFU), a portion of its Futures insurance fund and its corporate treasury. Binance said it will keep buying the remaining token assets through market and over-the-counter channels until coverage reaches 100% for all tokens.
Restoring backing for assets does not mean Binance has recovered those funds from the attacker, CNBC noted. Binance has not confirmed how or when it will resolve the final, less liquid portion, according to TechCrunch and Reuters as cited by Yahoo Finance.
Binance began phased withdrawals on November 1. The exchange processed $4.65 billion in withdrawals and $1.01 billion in deposits during the first nine and a half hours after withdrawals resumed. Net outflows came to about $3.64 billion, or 2.1% of assets under management, according to Gizmodo's summary of Binance's figures. Zhao said on X that most of the net outflow occurred in the first couple of hours and that 98% of users chose to stay.
A second phase began on November 3 at 04:00 UTC. According to Binance's sixth recovery update, as reported by ETHNews, the expansion includes additional assets on BNB Smart Chain, Ethereum, Solana, XRP Ledger, Sui, Arbitrum, Optimism, Tron and Base. That covers major assets including Bitcoin ($BTC), Ethereum (@ethereum) ($ETH), Solana (@solana) ($SOL) and ($XRP) (@XRP).
Binance said the listed assets will not be enabled simultaneously. It will restore specific network and asset combinations after security and preparatory checks, prioritizing tokens by user demand over the past week, according to TechFlow. A network's inclusion does not mean every asset on it will be available straight away, TokenPost noted.
Binance has said it will publish a detailed incident report after completing its investigation, according to Yahoo Finance's summary of the exchange's statements.
ETHNews: Binance Expands Crypto Withdrawals Across Nine Networks
Gizmodo: Binance Users Pull Billions Off Crypto Exchange After Withdrawals Resume
TokenPost: Binance Plans to Restore More Crypto Withdrawals Across Nine Networks
