Binance said it will fully cover approximately $6.3 billion in losses from a recent hacking incident using the SAFU fund and company funds.
In an official security update, Binance emphasized that it would not pass the losses on to users and that user assets are safe. It is currently working with partners in the blockchain industry to freeze approximately $3 billion of the affected assets on-chain.
Binance is also working with law enforcement agencies and blockchain analytics firms to track and recover additional funds. An initial investigation raised the possibility that the compromise of a DevOps engineer’s laptop was the starting point of the attack, and no evidence of wallet private-key leakage has been found so far.
After recovery efforts are complete, Binance plans to publish an updated Proof of Reserves (PoR), allowing users to verify its holdings of user assets again.