Cryptocurrency exchange Binance has officially initiated asset recovery efforts and reserved over $6.34 billion of its own company funds to fully cover user losses following a recent incident. Working alongside law enforcement agencies, blockchain intelligence firms, token issuers, and industry partners, the exchange has already assisted in freezing $3 billion in assets while actively tracing and recovering additional funds. Binance confirmed that $5 billion of the reserved funds are already held in the exact impacted token assets, with the remaining balance being purchased through open market and over-the-counter (OTC) channels to address asset shortfalls and ensure full reimbursement.
Full Statement from Binance
Binance has begun recovering affected assets for users and continues to work with law enforcement, issuers, blockchain intelligence firms and industry partners to trace, freeze and recover additional funds.
The company has already publicly committed to cover losses through company funds.
Binance has already reserved over $6.34B of company funds to cover this incident. $5B of these funds are already held in the exact token assets that were impacted. We are completing the purchase of the remaining amount by buying token assets through market channels and OTC channels. We are doing this to match the format of the remaining token assets and address any asset shortfalls. This step can take longer because some tokens may have low liquidity and OTC settlement also takes time. We will share more progress as soon as we can.
These figures do not include frozen or protected assets, which remain subject to ongoing recovery and verification. Currently, $3bn has been frozen, with thanks to our industry partners. We are working with partners and law enforcement to recover the frozen assets.We will continue to use company resources to cover confirmed shortfall and will provide further verified updates as recovery efforts progress. Ultimately, all user funds will be verified publicly through our Proof of Reserves.
We will weather this storm. Thank you for the support.
ENDS
