To compensate for the stolen funds, the company utilized its own reserves and specialized funds. According to Binance, the reimbursement covered 100 percent of the amount stolen during the security incident.
Funding Sources and Scale of Compensation
The exchange directed significant financial resources to restore user assets. Specifically, the company repurchased the affected tokens on the market and through over-the-counter (OTC) deals.
Compensation Parameters
The recovery process utilized part of the SAFU fund, the futures insurance fund, as well as Binance's corporate funds. Following the completion of the process, the company published a new Proof of Reserves snapshot. Once the Zero-Knowledge Proof is generated, users will be able to independently verify that their assets are backed at a ratio of at least 1:1.
"Binance has completed the coverage of assets affected by the security incident, and we have published a new Proof of Reserves snapshot."
Hack Details
The attack was discovered on October 30. According to preliminary estimates, the damage amounted to approximately 6.3 billion dollars. Analysts characterize this incident as one of the largest cryptocurrency thefts in history.
The Federal Bureau of Investigation (FBI), which operates under the U.S. Department of Justice, has accused the North Korean hacking group TraderTraitor of stealing more than 6 billion dollars.
