Binance Allocates $6.34B to Cover Massive Security Breach

Co-CEOs Yi He and Richard Teng confirmed the exchange will absorb the deficit through its Secure Asset Fund for Users and corporate treasury. Approximately $5 billion in stolen cryptocurrencies—including Bitcoin, Ethereum, USDT, and USDC—is already held by the platform. The company is actively acquiring the remaining $1.3 billion through market trades and over-the-counter agreements to ensure full restitution of stolen assets.

The breach, which began around 20:05 UTC on October 29, involved multiple compromise points rather than a single laptop as initially suspected. Investigators have found no evidence that private keys were leaked, though they continue to analyze the exploitation of Ethereum’s EIP-7702 authorization mechanism. While withdrawals remain suspended, deposits and other services stay operational. Binance intends to release updated Proof of Reserves results by November 2 to verify asset backing.

Simultaneously, the exchange is coordinating with law enforcement and blockchain intelligence firms to recover roughly $3 billion in assets currently frozen on-chain. Political scrutiny has intensified following the incident, with President Donald Trump stating his administration is monitoring the situation, while Senator Cynthia Lummis pointed to the stalled CLARITY Act as a missed opportunity for enhanced transaction-freezing capabilities.