Binance announced on Saturday that the exchange has recovered 90% of the assets stolen in the record $6.3 billion hack, up from 80% the previous day. Following this recovery pace, Binance targets reopening user withdrawal services on Sunday local time. However, this rapid recovery within days relied on a massive deployment of internal cash reserves.
Where the Replacement Funds Came From
The asset recovery was funded through a combination of the company’s internal cash, a partial allocation from the Secure Asset Fund for Users (SAFU), and part of the futures contract insurance fund. A Binance spokesperson emphasized that the financial impact is entirely borne by the company and not users. The exchange also ensured that the remaining insurance funds stay above the risk management thresholds required by internal governance.
Customer balances for Bitcoin (BTC), Ethereum (ETH), and eight other major crypto assets have been confirmed 100% backed by full reserves. These recovery flows were confirmed through on-chain data when the Binance SAFU Fund wallet transferred 7,500 BTC worth roughly $580.88 million to a new address. During the same timeframe, the Ethena protocol deposited 128.63 million ENA valued at $24 million to the Binance exchange.
Efforts to secure stolen assets also received external assistance. The Arbitrum Security Council executed a transaction freezing approximately $30.5 million in hacked funds directly at the hacker’s address.
Hunting Remaining Tokens and Verification Timeline
The remaining 10% shortfall consists of lower-liquidity tokens. To cover this portion, Binance continues to repurchase those tokens through open markets and over-the-counter (OTC) transactions - direct bilateral trading outside public exchange order books.
Although recovery progress was announced at 90%, independent verification is not yet complete. Auditing firm CertiK stated they still require additional data to verify the $5 billion asset replacement claim submitted by the exchange. Meanwhile, Binance stated that cryptographic proof of reserves based on zero-knowledge requires 40 to 50 hours of computation time before it can be fully published to the public.
For customers awaiting Sunday’s withdrawal reopening schedule, confirmation of 100% reserves for major assets provides initial clarity. The full validity of this multi-billion-dollar recovery now awaits the completion of zero-knowledge computations and CertiK’s audit results.
Via Cointelegraph.
Also read: How to Read Candlesticks for Beginners
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
