Binance to Allocate $6.34 Billion to Cover Losses From Hack

what happened

According to a post by Binance on X, the exchange has begun repaying users for assets lost in the hack and has set aside more than $6.34 billion from its own capital. About $5 billion of that sum is already held in the same tokens the attacker withdrew. The company is buying the remaining shortfall on the market and through OTC channels, though some tokens have thin liquidity, so the process may take longer.

Co-CEO Richard Teng said the attack likely began with a compromised laptop of a DevOps engineer, which gave access to a service container used for unauthorized withdrawals. The exchange said there is no evidence that any wallet private key was leaked and that withdrawals are temporarily suspended. About $3 billion has been frozen with partners and law enforcement. A detailed technical post-mortem will follow once the investigation is complete.

why it matters

At roughly $6.34 billion, the incident is second only to the $1.46 billion Bybit theft in February 2025 among centralized exchange hacks, so it draws wide attention across crypto markets. Investors will watch whether Binance can close the shortfall and confirm its reserves through Proof of Reserves.

market impact

Crypto market: hit to confidence in large exchanges and BNB while details of the breach remain unclear

• ▼BNB pressure down — exchange-specific risk and uncertainty over the size of the shortfall

tags

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