Home
Cryptocurrency
Cryptocurrency News
Binance Confirms $6.3 Billion Hack Losses Covered, New Reserve Disclosure Still Pending

Binance Confirms $6.3 Billion Hack Losses Covered, New Reserve Disclosure Still Pending

The exchange has not disclosed how much each of its three funding sources contributed towards replacing the affected assets

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 13 November 2026 16:52 IST

Binance Confirms $6.3 Billion Hack Losses Covered, New Reserve Disclosure Still Pending

Photo Credit: Unsplash/Vadim Art

Binance uses Merkle trees and zero-knowledge proofs to verify customer asset balances

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Binance had reported 98 percent replacement coverage on November 4
The exchange plans to replenish SAFU to around $1 billion
The latest announcement did not provide a new verification date

According to Binance, it has successfully reimbursed all user funds that were impacted by the $6.3 billion (roughly Rs. 5,93,523 crore) hack that occurred in October and has also released a new Proof of Reserves snapshot. The exchange said in their statement of November 12 that clients would be capable of verifying that they had at least 1:1 backing once the proof process was complete. The statement didn't mention the expected time for the proof process or the purchases of individual assets.

SAFU, Futures Insurance and Corporate Reserves Supported the Asset Replacement Process

Thanking customers for their patience, the exchange wrote, “Binance has completed coverage of assets impacted in the security incident.” Binance revealed three financing streams in its recovery update on October 31, which included the Secure Asset Fund for Users (SAFU), Futures Insurance Funds, and the corporate cash reserve. Binance had kept over $6.3 billion (roughly Rs. 5,93,523 crore) in company funds, and the replacement fund accounted for 90 percent of it.

Crypto Hacks Discussion

Explore More...

In addition, the trading exchange characterised its futures insurance reserves as belonging solely to the organisation rather than to clients. According to the reasoning, the transfer amount is derived from amounts above what the exchange's risk management system requires, with the rest meeting the criteria. For SAFU, Binance is set to replenish the emergency fund to around $1 billion (roughly Rs. 94,210 crore). The November 12 announcement did not give a conclusive breakdown of the final allocation between the three funding sources nor the completion of that particular replenishment pledge.

Bitcoin Slips Below $69,000 as Crypto Market Selling Pressure Intensifies

As of November 4, the replacement coverage had reached around 98 percent, according to Binance. The purchases were made through the market and over-the-counter (OTC) trades. The leftover tokens took time to be acquired due to lower liquidity. The company stated that its efforts included acquiring replacement assets from its reserves. Its latest announcement does not clarify whether all the cryptocurrencies stolen by the attackers have been recovered.

As per the reserves page of Binance, Merkle trees allow users to verify whether their balances are reflected in the total account balances mentioned in the reports. The zero-knowledge proof system verifies the balance calculations without disclosing users' balances. Customers have access to their record ID and Merkle leaf via the verification page of their accounts. Upon selecting a date for verification, customers see which assets are verified along with the account balances on that snapshot.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Crypto hacks, Crypto Losses, binance hack

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More