🔶 Binance will compensate for the damage from the hacking attack with $6.3 billion

Binance, one of the largest cryptocurrency trading platforms in the world, has announced that it will make up for all losses resulting from a cyberattack on the company and has set aside more than $6.34 billion of its own financial resources to cover this loss.

The attack, which involved the theft of approximately $6.3 billion in digital assets, is currently described as the largest theft ever recorded from a cryptocurrency exchange.

In its latest statement on Friday, October 30 (Aban 8), Binance said that $5 billion of the resources allocated to compensate for the damage will, from now on, be held in the same cryptocurrencies that were stolen in the attack.

This amount covers about 80% of the affected assets, and the company is currently purchasing the remaining cryptocurrencies through trading markets and over-the-counter (OTC) transactions.

The company emphasized that the financial loss resulting from the theft will be borne by Binance itself and its dedicated reserve fund for supporting users, known as SAFU, and that users’ assets should not be affected by this attack.

Binance also announced that so far, about $3 billion worth of assets related to the attack have been blocked, in cooperation with legal institutions, blockchain analytics companies, and other actors in the cryptocurrency industry.

The company, which operates one of the largest cryptocurrency exchanges in the world, said in its statement that about $5 billion of the company’s financial resources has been secured in the form of cryptocurrencies corresponding to the lost assets, including Bitcoin, Ethereum, Binance Coin, Tether, and USDC, and that to cover the remaining portion of the loss, the required cryptocurrencies are purchased through public markets and OTC trades.

Over-the-counter (OTC) trading refers to direct buying and selling of assets between parties, outside the exchange’s public order book.

Binance has stated that these funds are provided from the SAFU fund and the company’s treasury.

This fund is a dedicated financial reserve source that Binance created to support users in emergency conditions.

The company also promised to publish a new report on its reserves to clarify the status of its assets.

The first updated snapshot of Binance’s reserves is expected to be prepared, and its results will be published by Monday, November 2.

The proof-of-reserves report will allow users to check the amount of assets held on the platform and the backing available for the balances in their accounts.

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