Key Takeaways
- • Binance Co-CEO Richard Teng said the exchange's financial position remains strong despite a cryptocurrency hack worth US$6.3 billion, with fund flows beginning to return to normal (per Reuters, speaking at Hong Kong Fintech Week on 3 November).
- • Binance has recovered around 95% of the affected tokens; the remaining 5%, consisting of lower-liquidity assets, is being pursued with over-the-counter trading service providers.
- • Losses were covered by the Secure Asset Fund for Users (SAFU) and Binance's internal funds set aside for such risks.
- • Binance recorded net customer withdrawals of US$4.72 billion as of 2 November, approximately 3% of total platform assets, mostly in Tether (USDT) stablecoins.
- • The US FBI has attributed the theft of more than US$6 billion in crypto assets to North Korea, an allegation Pyongyang has denied; Binance plans to publish a post-mortem report.
Summary
Binance said its financial position remains strong following a cryptocurrency hack valued at US$6.3 billion, according to remarks by Co-CEO Richard Teng at Hong Kong Fintech Week on Tuesday, 3 November, as reported by Reuters. Teng said fund inflows and outflows on the exchange were beginning to return to normal and that the company had recovered around 95% of the affected tokens.
The unrecovered 5% consists of assets with lower liquidity, and Binance is working with over-the-counter (OTC) trading service providers to recover them. Teng said losses had been covered by the Secure Asset Fund for Users (SAFU), Binance's emergency reserve fund, together with the company's internal funds set aside to manage such risks. He acknowledged the episode, stating, "This has been a tough lesson. We take responsibility for what happened," and said Binance would strengthen its security systems and ensure user funds remain protected.
Binance recorded net customer withdrawals of US$4.72 billion as of Monday, 2 November, approximately 3% of total assets held on the platform, with most withdrawals made in Tether (USDT). Although withdrawals surged after the incident, Teng said transaction flows were stabilising, and several analysts cited the relatively limited scale of outflows as evidence that customer confidence remained intact. Teng also said Binance would release a post-mortem report detailing the timeline and findings of its investigation.
The US Federal Bureau of Investigation has attributed the theft of more than US$6 billion in crypto assets to North Korea, a claim the North Korean government has denied, calling it absurd rhetoric. Blockchain transaction records show most of the theft occurred within approximately 20 minutes on Thursday, 29 October. Binance claims more than 335 million users worldwide and average daily trading volumes of US$95 billion across digital assets and derivatives.
The unrecovered 5% consists of assets with lower liquidity, and Binance is working with over-the-counter (OTC) trading service providers to recover them. Teng said losses had been covered by the Secure Asset Fund for Users (SAFU), Binance's emergency reserve fund, together with the company's internal funds set aside to manage such risks. He acknowledged the episode, stating, "This has been a tough lesson. We take responsibility for what happened," and said Binance would strengthen its security systems and ensure user funds remain protected.
Binance recorded net customer withdrawals of US$4.72 billion as of Monday, 2 November, approximately 3% of total assets held on the platform, with most withdrawals made in Tether (USDT). Although withdrawals surged after the incident, Teng said transaction flows were stabilising, and several analysts cited the relatively limited scale of outflows as evidence that customer confidence remained intact. Teng also said Binance would release a post-mortem report detailing the timeline and findings of its investigation.
The US Federal Bureau of Investigation has attributed the theft of more than US$6 billion in crypto assets to North Korea, a claim the North Korean government has denied, calling it absurd rhetoric. Blockchain transaction records show most of the theft occurred within approximately 20 minutes on Thursday, 29 October. Binance claims more than 335 million users worldwide and average daily trading volumes of US$95 billion across digital assets and derivatives.
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