Binance says it has the financial resources to cover losses from a cryptocurrency theft valued at $6.3 billion. Co-CEO Richard Teng said 95% of the affected tokens had been replenished and activity on the platform was approaching normal levels. The remaining 5% consists of less liquid assets, which the company is working to recover with over-the-counter trading providers.
Speaking at Hong Kong Fintech Week on Tuesday, Teng said Binance would publish a detailed post-mortem of the attack at a later date. He said the losses had been covered by the exchange’s Secure Asset Fund for Users, known as SAFU, along with other funds set aside by the company. Teng also said customer funds were safe and described the incident as a painful lesson for the exchange.
By Monday, customers had withdrawn $4.72 billion more than they deposited, an amount equal to about 3% of the assets held on the platform. Most withdrawals were in USDT, Tether’s stablecoin. Binance said on Tuesday that hourly deposits had exceeded withdrawals, after it resumed withdrawals in stages following a suspension lasting more than two days.
The FBI said over the weekend that North Korea was responsible for the theft. Blockchain records indicate that most of the attack took place in about 20 minutes, shortly after 8 p.m. GMT on Thursday. Kim Yo Jong, the sister of North Korean leader Kim Jong Un, rejected the US accusation in a statement reported by state news agency KCNA, calling it “absurd rhetoric.”
Binance also introduced a promotional campaign on Monday offering trading-fee rebates, rewards for eligible users who reach at least $10,000 in trading volume, and annual yields of up to 10% on selected financial products. The company says the campaign will run through November 21.
Sources: Olhar Digital.