Binance Co-Founder Says Exchange Will Cover Losses After Hack

Binance co-founder Yi He said Nov. 4 that the exchange will cover users’ losses from a hack as it overhauls internal security controls and prepares an audit report.

Yi He said the exchange accepts criticism of its security and access controls. Binance has reworked its security boundaries around zero-trust and least-privilege principles, reset internal AI tools, reviewed permissions across departments and security environments, and updated equipment.

Binance’s Nov. 3 preliminary investigation said North Korean hackers used a fake job interview to gain access to an engineer’s computer, then used internal AI tools to reach wallet permissions. Yi He said Binance chose to disclose technical details, despite advice to withhold them, because the information could help other companies understand risks tied to social engineering and AI permissions.

Binance had previously committed company funds to replace the stolen assets. The exchange plans to have a security audit produce a report on its revised controls.