Key Takeaways
- • Binance says it has replenished 95% of the cryptocurrency stolen in a security breach estimated at $6.3 billion, according to Crowdfund Insider's report of remarks by co-CEO Richard Teng.
- • Binance will first draw on its Secure Asset Fund for Users (SAFU), with company resources covering any remaining losses, and says customers will not bear the cost.
- • The remaining 5% consists of less liquid tokens being sourced through over-the-counter providers to avoid adding pressure on the market.
- • Deposits and withdrawals had largely returned to normal levels by the time of Teng's interview at Hong Kong FinTech Week, after an initial surge in outflows that later stabilized.
- • Teng said Binance has deployed AI across customer service, compliance, operations and security monitoring, and called for tighter permissions on AI agents handling funds.
Summary
Binance has replenished 95% of the cryptocurrency stolen in a security breach that resulted in estimated losses of $6.3 billion, and has pledged to cover the remaining shortfall, co-CEO Richard Teng said. Speaking at Hong Kong FinTech Week, Teng said the company had set aside sufficient funds to absorb the losses and would not pass the cost of the incident on to customers. He said the exchange would first draw on its Secure Asset Fund for Users (SAFU), established to protect customers, with company resources covering any remaining losses.
Teng said the exchange moved quickly to secure its systems, close the attack route, and rebuild its withdrawal function before gradually restoring services. The company has been reviewing and replacing affected infrastructure, testing its systems and rebuilding the withdrawal process. Withdrawals resumed after the initial security work was completed, and by the time of the interview deposits and withdrawals had largely returned to normal levels. The incident initially prompted a rise in customer withdrawals as investors moved to secure holdings, but outflows subsequently stabilized, with hourly movements showing a more balanced pattern of deposits and withdrawals.
The remaining 5% consists of less liquid cryptocurrencies that Binance is sourcing through over-the-counter providers to avoid putting additional pressure on the market, Teng said. Binance, which has about 340 million users globally, received assistance from corporate partners, regulators and law enforcement agencies following the incident. Teng said a detailed post-mortem report would follow, and pointed to the exchange's proof-of-reserves system, which allows users to verify that assets back customer balances on a one-to-one basis.
Teng acknowledged the company's responsibility, saying, "We take full responsibility and accountability for it," and described the incident as a painful lesson. He argued that restoring confidence requires more than replacing stolen assets, citing the exchange's track record of supporting customers through earlier market and operational challenges.
The breach also raises broader questions about security as crypto platforms adopt automated systems and AI tools. Binance has deployed AI across customer service, compliance, operations and security monitoring. Teng said the technology can be used by both legitimate businesses and malicious actors, and that companies should carefully define the permissions given to AI agents, particularly when handling money, executing trades or making transfers. He said the exchange intends to emerge stronger and continue expanding into financial services beyond crypto trading.
Teng said the exchange moved quickly to secure its systems, close the attack route, and rebuild its withdrawal function before gradually restoring services. The company has been reviewing and replacing affected infrastructure, testing its systems and rebuilding the withdrawal process. Withdrawals resumed after the initial security work was completed, and by the time of the interview deposits and withdrawals had largely returned to normal levels. The incident initially prompted a rise in customer withdrawals as investors moved to secure holdings, but outflows subsequently stabilized, with hourly movements showing a more balanced pattern of deposits and withdrawals.
The remaining 5% consists of less liquid cryptocurrencies that Binance is sourcing through over-the-counter providers to avoid putting additional pressure on the market, Teng said. Binance, which has about 340 million users globally, received assistance from corporate partners, regulators and law enforcement agencies following the incident. Teng said a detailed post-mortem report would follow, and pointed to the exchange's proof-of-reserves system, which allows users to verify that assets back customer balances on a one-to-one basis.
Teng acknowledged the company's responsibility, saying, "We take full responsibility and accountability for it," and described the incident as a painful lesson. He argued that restoring confidence requires more than replacing stolen assets, citing the exchange's track record of supporting customers through earlier market and operational challenges.
The breach also raises broader questions about security as crypto platforms adopt automated systems and AI tools. Binance has deployed AI across customer service, compliance, operations and security monitoring. Teng said the technology can be used by both legitimate businesses and malicious actors, and that companies should carefully define the permissions given to AI agents, particularly when handling money, executing trades or making transfers. He said the exchange intends to emerge stronger and continue expanding into financial services beyond crypto trading.
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