Binance says it has replaced 90% of $6.3 billion stolen in record crypto hack

Binance, the world's largest cryptocurrency exchange, announced on Saturday that it has replaced approximately 90% of the $6.3 billion stolen in a record-breaking crypto hack. The exchange assured users that they would not suffer any financial losses as it would bear the entire impact of the theft. The news of the breach led to a significant sell-off in cryptocurrency markets on Friday, with Bitcoin dropping to a six-week low of $76,469.82 and trading around 3% lower.

Ether also experienced a decline of over 3%, while other major cryptocurrencies faced pressure as well.

In a social media update, Binance revealed that it had replenished the affected assets, including Bitcoin, Zcash, and stablecoins USDT and USDC. The replacement funds were sourced from a combination of the company's treasury, emergency reserves, and insurance funds. This update marked progress from the exchange's earlier disclosure that it had covered around 80% of the stolen assets. The remaining tokens were more difficult to source and replace due to their lower liquidity.

Binance also stated that it was working towards restoring withdrawals by Sunday, as the service had been suspended during its response to the incident. The exchange aimed to contain the impact and replenish the affected assets as quickly as possible. The scale of the breach has sent shockwaves through the cryptocurrency industry, with experts describing the theft as the largest in cryptocurrency history and one of the biggest cyber incidents on a broader scale.

The incident has heightened concerns about the security of crypto platforms and the protection of customer funds, particularly as digital asset firms strive for wider mainstream adoption. Binance's commitment to making users whole and its plan to resume withdrawals are crucial steps in restoring trust and confidence following the attack.