CZ Says Binance's Balance Sheet Covers Theft Losses Without New Funding

Binance founder CZ said the exchange is using its own balance sheet to cover losses from its Oct. 29 hot-wallet theft, adding that it has not borrowed, sold assets or raised funds for the response.

CZ said Binance had allocated all the funds needed to cover the losses, though 5% still needed to be converted into some smaller tokens. Binance co-CEO 何一 said the exchange still had to swap some stablecoins and Bitcoin (BTC) for the affected altcoins, but had no funding shortfall.

Binance had earlier said it had covered about 95% of the affected amount. CZ's update said all funds needed for the losses were allocated, while the remaining conversion work involved obtaining smaller tokens. 何一 said the exchange had no funding shortfall.

Binance estimated the hot-wallet attack's impact at $6.3 billion. The exchange said its hot wallets were compromised at 4:05 p.m. ET on Oct. 29.