Binance Says It Will Fully Cover $6.3 Billion in Hacking Losses, Rebuild Wallet System

Binance reiterated that it will fully cover the $6.3 billion in losses from the recent hack.

BlockBeats reported on Nov. 4 that Cici, head of Binance's China community, said the exchange would absorb the hacking losses in full. "Binance has never misappropriated user assets," Cici said. After withdrawals resumed, the exchange processed withdrawal requests equivalent to the value of the stolen assets.

Binance also said it has stepped up security measures, including improvements to its wallet system. As of Nov. 3, the exchange had rebuilt the affected wallet system and internal artificial intelligence tools, while strengthening access controls. It also replaced devices affected by the hack and revoked related credentials and permission tokens.

Binance said the hackers infiltrated its internal systems over several months using fake recruitment schemes, tampered developer tools and malware that existing security systems failed to detect. The attackers also used Binance's internal AI tools to enable further intrusions, according to the exchange.

Binance said it plans to track and recover frozen or blocked funds on a transaction-by-transaction basis in cooperation with investigative authorities, blockchain analytics firms and other parties. Cici added that Binance will share the attack's characteristics with other exchanges and participate in real-time alerts and joint tracking of suspicious funds.