Binance allocates $6.34bn to compensate cyberattack victims

Cryptocurrency exchange Binance has allocated more than $6.34 billion from its own funds to compensate customers affected by a cyberattack, saying it has already covered 90 per cent of the financial losses.

In a statement, the company said it was continuing to purchase digital currencies through open-market and over-the-counter (OTC) transactions to compensate customers for the remaining losses.

Binance said, it had initially covered around 80 per cent of the total amount lost in the attack, but the compensation rate had now reached 90 per cent.

The company said losses involving 10 major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USD Coin (USDC), XRP, USD1, RLUSD and Zcash (ZEC), had been fully compensated.

The remaining 10 per cent of compensation involves some less-traded tokens with relatively low liquidity, it added.

Binance said it would continue purchasing the affected tokens through open-market and other channels until compensation for all tokens reached 100 per cent.

The company also assured customers that they would not face any pressure, as Binance would bear the full financial responsibility for the stolen funds.

Its immediate priority is to restore customers' withdrawal facilities, with the company expressing optimism about resuming the service by November 1, in line with its previously announced schedule.

Binance also announced plans to publish a new proof-of-reserves report, enabling customers to independently verify that their assets are secured at a minimum 1:1 ratio through zero-knowledge proof technology.

Earlier, on Thursday, the company said it was investigating reports of a potential security vulnerability while assuring customers that all deposits remained safe.