Binance Says It Will Fully Cover $6.3 Billion in Hack Losses, Rebuild Wallet System
Summary
- Binance said it will fully cover the $6.3 billion in losses from the recent hacking incident with its own funds.
- Binance said it has taken security measures including rebuilding the affected wallet system and internal artificial intelligence (AI) tools, while strengthening access controls.
- Binance said funds that were frozen or blocked will be traced and recovered in cooperation with investigative authorities and blockchain analytics firms, and that it will also join other exchanges in real-time alerts and joint tracking of suspicious funds.
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Binance reiterated that it will fully absorb the $6.3 billion in losses from its recent hacking incident.
BlockBeats reported on Nov. 4 that Cici, head of Binance's China community, said the exchange would cover the hack losses in full. “Binance has never misused user assets,” Cici said. After withdrawals resumed, the exchange processed withdrawal requests equivalent to the value of the stolen assets.
Binance also said it has taken steps to strengthen security, including upgrades to its wallet system. As of Nov. 3, the company had rebuilt the affected wallet system and internal artificial intelligence tools while tightening access controls. It also replaced devices affected by the hack and revoked related credentials and authorization tokens.
Binance said the hackers infiltrated its internal systems over several months using fake recruitment efforts, tampered developer tools and malware that existing security tools failed to detect. The company said its internal AI tools were also used to facilitate further intrusion.
The exchange said frozen and blocked funds will be traced and recovered on a transaction-by-transaction basis in cooperation with investigative authorities and blockchain analytics firms. Cici added that Binance will share details of the attack with other exchanges and participate in real-time alerts and joint tracking of suspicious funds.
