Binance Reserves $6.34 Billion to Cover Losses After Security Incident

Binance reserved more than $6.34 billion in company funds and began restoring user assets after an Oct. 29 security incident that it estimated affected about $6.3 billion.

The exchange announced the plan at 6:55 a.m. ET Friday (10:55 UTC). It said $5 billion of the reserve was already held in affected tokens and it was buying about $1.34 billion more through market and over-the-counter trades. The exchange said thin markets and trade settlement could slow the purchases.

Binance put frozen assets at about $3 billion, separate from the reserve and still subject to recovery and verification. The exchange has begun restoring affected assets, but has not provided an amount already returned or a completion date.

Changpeng Zhao, Binance’s co-founder and former chief executive, wrote Oct. 29: “I don't manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered.”

Binance’s initial $6.3 billion figure estimates affected assets, not a final net-loss tally.