Binance absorbs $6.3 billion loss

Binance, the world's largest cryptocurrency exchange, has passed an important threshold in the Binance loss recovery process. The company announced that it paid back 90 percent of the $6.3 billion in assets stolen in the attack, which is considered the largest crypto theft in history. He also promised to cover the remaining losses from his own resources. Therefore, the company will bear the financial burden, not the users.

How Is Binance Loss Recovery Progressing?

Binance transferred funds from its own corporate treasury and various funds to replace the stolen assets. According to the company, more than $6.34 billion in total funds have been allocated for this purpose. Therefore, all of the users' losses will be covered. Moreover, this burden will not be reflected on the users.

The 10 percent that has not yet been met consists of cryptocurrencies with low liquidity. Liquidity means the ease with which an asset can be bought and sold quickly. Therefore, it may take longer to obtain sufficient quantities of the assets in question. In contrast, all nine common crypto assets, including Bitcoin, Ethereum, and Tether, were covered.

In its statement on Saturday, the company emphasized that the financial impact will belong to Binance, not the users. Thus, users will not pay for the losses. However, the duration is not clear for assets with low liquidity.

Withdrawals Reopened

Withdrawals, which were stopped after the attack, are gradually restarting. Binance announced the reactivation of withdrawals across multiple networks in its update on Sunday, November 1. However, not all affected services have been opened yet. Work continues for this. However, the investigation continues.

Who is Behind the Attack?

The US Federal Bureau of Investigation (FBI) reported on Saturday that the attack was carried out by North Korea. According to the FBI, the attack was the work of the North Korean-backed TraderTraitor group. The attackers also converted the stolen assets into Ethereum.

Binance's initial investigation pointed to unauthorized footage being taken by seizing an engineer's laptop. However, the company announced in subsequent updates that there were multiple security breach points. So the incident turned out to be more widespread than first thought.

Binance Co-CEO Richard Teng said that the attack was carried out by more than one person. According to Teng, the attackers used sophisticated methods to hide their tracks. Among these was a "self-destruct mechanism" to erase traces.

The company will continue to gradually restart withdrawals until all services are opened. It may take longer to cover the 10 percent of assets with low liquidity.