Crypto Heist: Binance Commits $6.3bn to Cover Affected Funds as Asset Recovery Begins

Binance says it has begun recovering assets affected by a security incident and reserved more than $6.34 billion in company funds to cover users’ losses.

The cryptocurrency exchange said it is working with law enforcement agencies, token issuers, blockchain intelligence firms and industry partners to trace, freeze, and recover additional funds.

In an update on Friday, Binance said more than $5 billion of the reserved funds are already held in the exact tokens affected by the incident.

“We are completing the purchase of the remaining amount by buying token assets through market channels and OTC channels. We are doing this to match the format of the remaining token assets and address any asset shortfalls,” the company said.

Binance said the process could take longer because some tokens have low liquidity and over-the-counter transactions require additional settlement time.

The exchange said the $6.34 billion reserve did not include assets already frozen or protected during the recovery exercise.

“Currently, $3bn has been frozen, with thanks to our industry partners. We are working with partners and law enforcement to recover the frozen assets,” the firm said.

Binance had earlier pledged to cover users’ losses through company funds following the security incident.

The company reiterated its commitment to cover confirmed shortfalls, adding that it would provide further updates as recovery efforts progressed.

“We will continue to use company resources to cover confirmed shortfall and will provide further verified updates as recovery efforts progress,” it said.

The exchange said users’ funds would ultimately be verified publicly through its proof of reserves system.