There’s a new development in the Binance security incident: reimbursement of the stolen assets is underway.
According to today’s Update #2: Binance has set aside more than $6.34 billion in company funds. Tokens worth over $5 billion are already in place, and the remainder will be made up through market purchases and OTC trades. The roughly $3 billion frozen earlier is separate and is not included in this reimbursement fund. The final figures will be verified through a proof of reserves.
For comparison, here’s the timeline: the incident was disclosed on October 29, with the official estimate putting the impact at around $6.3 billion; on October 30, Binance announced the preliminary cause and that roughly $3 billion had been frozen; today’s step turns “we can afford to compensate users” into “we’re already compensating them”—with over $5 billion in tokens in place, meaning the corresponding assets for most of those affected are ready.
My take: reimbursement is progressing faster than I expected, but there are two things to watch. First, the remaining amount will be covered through market and OTC purchases—could the buying process itself affect the prices of the relevant coins? Second, when will the final proof of reserves be released? That will be the hard evidence behind the claim that “user funds are safe.” I suspect the timeline for resuming deposits and withdrawals will probably become clear only after the proof of reserves is released.
$BNB
According to today’s Update #2: Binance has set aside more than $6.34 billion in company funds. Tokens worth over $5 billion are already in place, and the remainder will be made up through market purchases and OTC trades. The roughly $3 billion frozen earlier is separate and is not included in this reimbursement fund. The final figures will be verified through a proof of reserves.
For comparison, here’s the timeline: the incident was disclosed on October 29, with the official estimate putting the impact at around $6.3 billion; on October 30, Binance announced the preliminary cause and that roughly $3 billion had been frozen; today’s step turns “we can afford to compensate users” into “we’re already compensating them”—with over $5 billion in tokens in place, meaning the corresponding assets for most of those affected are ready.
My take: reimbursement is progressing faster than I expected, but there are two things to watch. First, the remaining amount will be covered through market and OTC purchases—could the buying process itself affect the prices of the relevant coins? Second, when will the final proof of reserves be released? That will be the hard evidence behind the claim that “user funds are safe.” I suspect the timeline for resuming deposits and withdrawals will probably become clear only after the proof of reserves is released.
$BNB
