Binance Sets Aside $6.34B to Cover Hack Losses, CEO Says 'Your Assets Are Safe'
According to reporting by Decrypt Financial Technology, Richard Teng said the attacker used a self-destruct mechanism and an EIP-7702 delegation that bypassed Binance's normal approval controls.
Financial technology, consumer banking, and digital asset markets are assessing developments reported by Decrypt Financial Technology. Consumers and investors should review regulatory guidance and rate disclosures.
“Financial technology, consumer banking, and digital asset markets are assessing developments reported by Decrypt Financial Technology. Consumers and investors should review regulatory guidance and rate disclosures.”
Key Verified Points
- •Official Issuing Wire: Decrypt Financial Technology
- •Editorial Desk: Digital Banking
- •Coverage Domain: FINTECH
- •Publication Status: Verified Journalistic Dispatch
Executive Briefing
According to reporting by Decrypt Financial Technology, Richard Teng said the attacker used a self-destruct mechanism and an EIP-7702 delegation that bypassed Binance's normal approval controls.
Detailed Factual Report
Binance will cover every dollar lost in this week's hack with its own money, CEO Richard Teng said in a video address on Friday, adding that customer funds were never touched.
"We are committed to covering all hacked losses through our company funds. Your assets are safe," Teng said, according to a transcript he tweeted.
Binance has reserved more than $6.34 billion of company funds to cover the stolen assets, $5 billion of which is already held in the exact tokens taken, including USDC, USDT, BTC, ETH and BNB, he said. The exchange is buying the rest through market and over-the-counter channels.
Teng said the hack hit Binance's own hot wallet, not customer funds. "We never use any customer funds, so they are not impacted," he said, adding that most user assets are held in cold wallets and only moved into a hot wallet when a user withdraws. Binance's ability to absorb a loss of this size comes from keeping much of its operating earnings in crypto, he said.
Verified Data Points & Key Takeaways
Geographic Scope & Community Impact
Recommended Action & Safety Guidelines
Source & Verification Provenance
Information in this article was compiled directly from records provided by Decrypt Financial Technology. Access the primary source document at: https://decrypt.co/382237/binance-sets-aside-6-34b-to-cover-hack-losses-ceo-says-your-assets-are-safe. Reporting and editorial review conducted by the USA NOW News Desk.
Event Timeline & Developments
Frequently Asked Questions
How does this development impact digital banking and consumer finance?
Financial technology and digital asset platforms are aligning operations with regulatory directives issued by bodies including the SEC and CFPB, as reported by Decrypt Financial Technology.
Are consumer funds and deposits protected?
Consumers should ensure their banking and fintech providers interface with FDIC-insured or federally supervised depository institutions.
Official Government & Primary Citations
- Decrypt Financial Technology — https://decrypt.co/382237/binance-sets-aside-6-34b-to-cover-hack-losses-ceo-says-your-assets-are-safe
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