Binance reopens withdrawals three days after hack and says it has resources for 95% of stolen assets

Binance resumed releasing withdrawals on Sunday, the 1st, around three days after an invasion that, according to Revista Oeste, led to the suspension of withdrawals on Thursday, the 29th, the date on which the attack was identified. The case involves a theft of billion-dollar proportions in cryptocurrencies, valued by Revista Oeste at US$6.3 billion, the equivalent of around R$34 billion.

The numbers vary depending on the source. InfoMoney reports that hackers tried to withdraw more than US$6 billion, while Times Brasil and Investing.com speak of something between US$6 billion and US$6.3 billion. According to Times Brasil, the assets were removed from the exchange's own online wallets.

The recovery began gradually. According to InfoMoney, Bitcoin withdrawals reopened after 2pm Singapore time, more than two days after suspension. The first phase covers 15 tokens, including Ether, USDT (Tether) and USDC (Circle Internet Group). Times Brasil reports that the order of networks starts with Bitcoin, followed by Ethereum and BNB Smart Chain.

In the field of compensation, Revista Oeste states that Binance has gathered resources to cover 95% of the stolen assets, originating from its own revenues and emergency reserves, and promises to return the amounts to customers. Times Brasil reported that, on Saturday, the company was talking about recovery of up to 90%. The remaining 5% depends on purchasing less traded cryptocurrencies, which are more difficult to acquire in volume. According to Times Brasil, the exchange will continue to buy the remaining tokens on the market and over the counter until it covers 100% of all tokens.

The FBI attributes the attack to the TraderTraitor group, linked to North Korea, in a statement released on Saturday night, according to Revista Oeste and Times Brasil. The agency warns that criminals can hide the origin of funds with successive transfers, a practice that tends to complicate the tracking of money.

What changes for the investor

For those who invest in the stock market, Nasdaq, interest rates and the dollar, the episode reinforces the risk of custody on centralized platforms, where the client depends on the company's security to maintain their assets. The gradual reopening reduces the immediate pressure on liquidity, but the phase of purchases of less traded tokens could, in theory, concentrate demand in a few securities and increase the volatility of these assets. This report does not recommend buying or selling any cryptocurrency and does not project prices; What can be said is that complete recovery will depend on the execution of the plan announced by the exchange.

Automatically translated from Portuguese.