Binance said it has completed the recovery of cryptocurrency assets affected by the October 29th attack. The exchange set aside more than $6.34 billion to cover losses and published a new reserve record for 198 tokens. Withdrawals are gradually reopening.
The exchange said it acquired the lost tokens through open-market purchases and over-the-counter (OTC) transactions. The purchases were funded with company money, part of the Secured Asset Fund for Users (SAFU), and resources allocated from the futures insurance fund. Binance said the amount drawn from the futures fund came from the portion that exceeded the company’s required risk-management level.
Related news: Bitcoin falls below $72,000 as altcoin sell-off intensifies. Why did cryptocurrencies decline?Binance has pledged to replenish the resources used, restoring its emergency SAFU reserve to about $1 billion. In an update on November 4th, the exchange said it had covered about 98% of the affected assets.
Binance said today that it had published a new Proof of Reserves record, with a snapshot taken at 03:00 Turkish time. Preparing the zero-knowledge proof, which allows users to check their own balances, is expected to take about 40 to 50 hours because of the computational workload.
Binance said that after the process is complete, users holding tokens affected by the attack will be able to use the reserve system to verify that their balances are backed by at least the exact equivalent.
Binance said it will continue reopening withdrawals in stages and announce further reopenings once finalized. The latest announcement did not give a specific date for the remaining withdrawals.
*This is not investment advice.
