Binance Sets Aside $6.34B to Cover Hack Losses, CEO Says 'Your Assets Are Safe'

In brief

• Binance CEO Richard Teng said the exchange will cover all hacked losses, having reserved over $6.34 billion of company funds, $5 billion in the affected tokens.
• Teng said the attacker used a self-destruct mechanism to wipe tooling and traces, and an EIP-7702 delegation that bypassed Binance's normal approval controls.
• Binance aims to restore withdrawals by Sunday and publish a full proof of reserves by Monday, as the attacker keeps moving funds on Tron.

Binance will cover every dollar lost in this week's hack with its own money, CEO Richard Teng said in a video address on Friday, adding that customer funds were never touched.

"We are committed to covering all hacked losses through our company funds. Your assets are safe," Teng said, according to a transcript he tweeted.

Binance has reserved more than $6.34 billion of company funds to cover the stolen assets, $5 billion of which is already held in the exact tokens taken, including USDC, USDT, BTC, ETH and BNB, he said. The exchange is buying the rest through market and over-the-counter channels.

Teng said the hack hit Binance's own hot wallet, not customer funds. "We never use any customer funds, so they are not impacted," he said, adding that most user assets are held in cold wallets and only moved into a hot wallet when a user withdraws. Binance's ability to absorb a loss of this size comes from keeping much of its operating earnings in crypto, he said.