In a lengthy message to users, Binance CEO Richard Teng reaffirmed the platform’s commitment to compensating for all losses resulting from the hack using its own funds. He stressed that customer funds were unaffected and that the attack targeted only the company’s hot wallet.
💰 How will affected users be compensated, according to “Teng”?
🛡️ Binance has allocated more than $6.34 billion in company funds to cover the stolen assets
🪙 Of that, $5 billion is already held in the same affected tokens, such as USDT, USDC, BTC, ETH, and BNB
🛒 The platform is buying the remaining amount on the market and through over-the-counter (OTC) trading channels
✅ “We never use customer funds.” The affected wallet was the company’s hot wallet, while most users’ assets are kept in cold wallets
🔍 Details of the hack:
👥 The attack was not carried out by a single person. Investigations uncovered additional points of compromise after an initial suspicion that a computer had been compromised
💣 The attacker used a “self-destruct” mechanism that removed tools and traces, making the investigation more difficult
🔑 The EIP-7702 protocol was exploited to gain execution privileges on a hot wallet, bypassing the usual approval procedures
🛠️ Plan for the next phase:
🔄 Rebuild the withdrawal service, with hopes of resuming it before Sunday’s deadline, in about 40 hours
🔐 Conduct a comprehensive security review of all the company’s systems
📊 Publish a full proof-of-reserves report
💰 How will affected users be compensated, according to “Teng”?
🛡️ Binance has allocated more than $6.34 billion in company funds to cover the stolen assets
🪙 Of that, $5 billion is already held in the same affected tokens, such as USDT, USDC, BTC, ETH, and BNB
🛒 The platform is buying the remaining amount on the market and through over-the-counter (OTC) trading channels
✅ “We never use customer funds.” The affected wallet was the company’s hot wallet, while most users’ assets are kept in cold wallets
🔍 Details of the hack:
👥 The attack was not carried out by a single person. Investigations uncovered additional points of compromise after an initial suspicion that a computer had been compromised
💣 The attacker used a “self-destruct” mechanism that removed tools and traces, making the investigation more difficult
🔑 The EIP-7702 protocol was exploited to gain execution privileges on a hot wallet, bypassing the usual approval procedures
🛠️ Plan for the next phase:
🔄 Rebuild the withdrawal service, with hopes of resuming it before Sunday’s deadline, in about 40 hours
🔐 Conduct a comprehensive security review of all the company’s systems
📊 Publish a full proof-of-reserves report