Binance launches stolen asset recovery and allocates $6.34 billion to cover losses

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Binance stolen asset recovery

Binance restores reserves and seeks to recover $3 billion

Of the $6.34 billion set aside, approximately $5 billion was already held by the company in the same cryptocurrencies affected by the hack. Binance is using the remaining funds to purchase the missing assets.

The company warned that some transactions could take longer due to limited liquidity in certain tokens and settlement times for over-the-counter deals.

Binance co-CEO Yi He confirmed that the exchange is purchasing altcoins in amounts corresponding to the stolen assets. According to her, the purchases are being conducted through both OTC platforms and cryptocurrency exchanges.

She also noted that Binance's SAFU insurance fund and corporate reserves hold substantial amounts of Bitcoin and Ethereum. Once the purchases are completed, the company intends to publish updated Proof of Reserves data.

The allocated $6.34 billion does not include frozen or otherwise secured assets. According to Binance, investigators have managed to freeze approximately $3 billion worth of cryptocurrencies, and that figure could increase as additional addresses are traced.

The company listed USDT, USDC, RLUSD, USD1, XUSD, USDT0, WBETH, XAUT, PAXG, USDP, and ARB among the frozen assets. The exchange is working with law enforcement agencies and cryptocurrency industry representatives to recover them.

Binance said deposits are operating normally, while withdrawals are expected to resume within 48 hours. The exact timeline for restoring all operations has not yet been specified.

Experts investigate attack mechanism and possible involvement of North Korean hackers

Cybersecurity specialists are examining the possible involvement of the North Korean hacking group TraderTraitor in the Binance breach. However, the attackers' identities have not been officially confirmed.

During the investigation, the exchange discovered additional points of compromise within its infrastructure. Initially, investigators focused on an allegedly infected laptop belonging to one of the company's engineers.

Researchers are also separately analyzing the possible use of the EIP-7702 mechanism on Ethereum. This feature allows regular cryptocurrency wallets to temporarily use smart contract functionality, including executing multiple operations within a single transaction.

The massive Binance hack was accompanied by a sharp decline in the cryptocurrency market. Over the past 24 hours, forced liquidations of traders' positions reached $1.53 billion, with traders betting on rising prices suffering the largest losses.

The sell-off affected major cryptocurrencies and intensified pressure on the derivatives market. Widespread liquidations became one of the most significant market consequences of the attack on the exchange.

Earlier, we reported that the FUNToken token fell sharply following sales linked to the Binance hack. Selling pressure was exacerbated by low liquidity in the trading pair on the decentralized exchange Uniswap.

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