Binance says it set aside $6.34 billion to cover losses from its hack
In brief
- Binance says it set aside more than $6.34 billion in company funds to cover hack losses.
- Binance said $5 billion is held in the exact stolen tokens, in its custody.
- Binance didn't disclose wallet addresses or when it acquired the assets.
- Roughly $3 billion in affected assets was frozen with help from industry partners, according to Binance.
- Kalshi raised $1 billion, Reuters reported; Utah separately filed criminal charges alleging illegal gambling.
What Binance says it's holding
A Binance spokesperson told Cointelegraph that the $5 billion sits in the exact token assets required, and that those assets are in Binance custody.
“The $5 billion is held in the exact token assets that are required. These assets are in Binance custody,” a Binance spokesperson told Cointelegraph.
The spokesperson declined to share wallet addresses (citing security reasons) but said the holdings would show up in the exchange's next proof-of-reserves report.
No addresses, no acquisition date.
Binance also said it files weekly reports on its company funds with the Financial Services Regulatory Authority (FSRA), the financial regulator of Abu Dhabi Global Market in the UAE, and that this requirement predated the hack.
How the breach happened
Binance said its initial investigation pointed to a compromised DevOps engineer's laptop that may have allowed attackers to submit unauthorized withdrawals. It said it found no evidence of a wallet private-key leak. Industry partners helped freeze approximately $3 billion in affected assets, according to the exchange, and Binance pledged to cover all losses through its Secure Asset Fund for Users and company funds, saying user funds were safe.
Who's behind it? Cybersecurity analysts cited by Cointelegraph pointed to North Korean group TraderTraitor as the likely attacker, citing links to a previous hack. Withdrawals stayed paused during a security revamp, and Binance said it expected to resume them within 48 hours.
Kalshi raises $1 billion amid Utah charges
Prediction market platform Kalshi raised $1 billion at a $40 billion valuation (Wellington Management and Sequoia Capital co-led the Series G), Reuters reported on Thursday, as relayed by Cointelegraph. That's nearly double the $22 billion valuation from its May raise. Kalshi also disclosed that its non-sports markets passed $1 billion in annualized revenue, according to The Wall Street Journal.
It wasn't a clean week, though. Utah filed criminal charges against Kalshi and its co-founders on Wednesday over alleged illegal gambling activities, escalating a dispute over whether prediction markets fall under federal derivatives oversight or state gambling laws. The Commodity Futures Trading Commission separately moved to block Utah's enforcement efforts.
Frequently asked questions
How did the Binance hack happen?
Binance said its initial investigation pointed to a compromised DevOps engineer's laptop that may have allowed attackers to submit unauthorized withdrawals. The exchange said it found no evidence of a wallet private-key leak.
How is Binance covering losses from the hack?
Binance said it set aside more than $6.34 billion in company funds, with $5 billion held in the same tokens that were stolen. It pledged to cover all losses using its Secure Asset Fund for Users and company funds. The exchange hasn't disclosed the wallet addresses, but said the holdings would appear in its next proof-of-reserves report.
