Binance reported that it set aside more than US$6.34 billion

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Binance reported that it set aside more than US$6.34 billion in its own funds to cover losses from a security incident and begin returning the affected assets.

Of that amount, US$5 billion is already in the same affected tokens; the rest is being acquired on the market and through OTC transactions. In addition, nearly US$3 billion has already been frozen with the help of partners, authorities, and blockchain analytics firms, and could be recovered separately from the reserved fund.

The company said it will verify balances through its Proof of Reserves system and publish updates as recovery progresses. @CZ @Yi He @Richard Teng

Binance News

Binance News Update | Binance Reserves $6.34 Billion to Cover Security Incident, With $5 Billion Already Held in the Affected Tokens and $3 Billion Frozen

Binance has reserved more than $6.34 billion of company funds to cover losses from its recent security incident and has begun restoring affected assets to users, the exchange said in an update. The reserve exceeds Binance’s earlier estimate of about $6.3 billion in affected assets, and does not count a further $3 billion already frozen with the help of industry partners.$5 Billion Already Held in the Affected TokensOf the reserve, $5 billion is already held in the exact token assets that were affected, Binance said. The exchange is buying the remaining roughly $1.34 billion through market and over-the-counter (OTC) channels, so that users are repaid in the same tokens they lost. Binance said this step may take longer, because some tokens have low liquidity and OTC trades take time to settle.$3 Billion Frozen and Recovery UnderwayBinance said about $3 billion has been frozen so far and it is working with law enforcement, token issuers, blockchain intelligence firms and industry partners to trace, freeze and recover more. Frozen and protected assets are not included in the reserve figures and remain subject to recovery and verification. The exchange said it will continue using company resources to cover any confirmed shortfall.Public Verification Through Proof of ReservesAll user funds will ultimately be verified publicly through Binance’s Proof of Reserves, the exchange said, adding that it will share further verified updates as recovery progresses. “We will weather this storm,” Binance said. “Thank you for the support.”