Binance is putting real money on the line this time: a $6.34 billion backstop—but whether the figures can be verified is what matters.
Multiple outlets, including CoinDesk and Cointelegraph, confirmed on October 30 that Binance has put up more than $6.34 billion in company funds to cover the roughly $6.3 billion in losses from the theft. Of that, $5 billion is already held in the same tokens that were stolen, while the remaining roughly $1.34 billion is being acquired through public markets and over-the-counter trades. Another roughly $3 billion in stolen assets has been frozen by partners; that amount is not included in the $6.34 billion.
Binance has also given a timeline: it aims to resume withdrawals before Sunday and publish a full proof of reserves on Monday. Deposits have remained open, while withdrawals are still paused. Withdrawal services are being rebuilt, and they won't go live unless they pass testing.
But questions have been raised, too. CertiK says it needs more information to independently verify the $5 billion held in the same tokens; Nansen has also said it cannot verify the source of the remaining funds. CertiK previously did some of the math: counting only the $3 billion frozen and roughly $1.17 billion in emergency funds, that would cover only about 66%, leaving a gap of roughly $2.1 billion.
So the conclusion is straightforward: Binance's pledge sounds firm, but whether the money is enough—and whether it can be verified—will be put to the test by Monday's proof of reserves. Until that proof is published, don't confuse “backstopped” with “funds received.”
#Binance #CryptoSecurity
Multiple outlets, including CoinDesk and Cointelegraph, confirmed on October 30 that Binance has put up more than $6.34 billion in company funds to cover the roughly $6.3 billion in losses from the theft. Of that, $5 billion is already held in the same tokens that were stolen, while the remaining roughly $1.34 billion is being acquired through public markets and over-the-counter trades. Another roughly $3 billion in stolen assets has been frozen by partners; that amount is not included in the $6.34 billion.
Binance has also given a timeline: it aims to resume withdrawals before Sunday and publish a full proof of reserves on Monday. Deposits have remained open, while withdrawals are still paused. Withdrawal services are being rebuilt, and they won't go live unless they pass testing.
But questions have been raised, too. CertiK says it needs more information to independently verify the $5 billion held in the same tokens; Nansen has also said it cannot verify the source of the remaining funds. CertiK previously did some of the math: counting only the $3 billion frozen and roughly $1.17 billion in emergency funds, that would cover only about 66%, leaving a gap of roughly $2.1 billion.
So the conclusion is straightforward: Binance's pledge sounds firm, but whether the money is enough—and whether it can be verified—will be put to the test by Monday's proof of reserves. Until that proof is published, don't confuse “backstopped” with “funds received.”
#Binance #CryptoSecurity
