Binance Backs Users With USD6.34B After Security Incident
“Your funds are safe; Binance is covering the impact of this incident, not you,” the exchange said in a statement to users.
The platform said it has earmarked over $6.34 billion from company reserves, including its Secure Asset Fund for Users, to offset the damage. Of that sum, $5 billion is held in the exact token assets that were affected.
An initial investigation found no evidence that wallet private keys were leaked, Binance said, adding that customer deposits and general trading are operating normally.
The exchange is working with law enforcement agencies, token issuers, blockchain intelligence firms and industry partners to trace and recover the affected assets. Roughly $3 billion has already been frozen on-chain with help from blockchain partners, according to the statement.
As a precaution, Binance temporarily halted withdrawals while it overhauls the security of its withdrawal services and related addresses. It has also revoked authorizations on the affected addresses and brought in law enforcement to pursue those responsible.
Binance said it will announce when withdrawal services resume, publish a full technical post-mortem once the investigation concludes, and release an updated proof-of-reserves report to verify user balances.
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