Binance has reserved more than $6.34 billion in company funds to cover users’ losses following a security incident, as the cryptocurrency exchange begins recovering affected assets.
The exchange said it was working with law enforcement agencies, token issuers, blockchain intelligence firms and industry partners to trace, freeze and recover additional funds.
In an update weekend, Binance said more than $5 billion of the reserved funds were already held in the exact tokens affected by the incident.
“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,” the company said.
Binance explained that completing the process could take longer because some affected tokens have low liquidity, while over-the-counter transactions require additional settlement time.
The exchange said the $6.34 billion reserve did not include assets already frozen or protected during the recovery exercise.
“Currently, $3bn has been frozen, with thanks to our industry partners. We are working with partners and law enforcement to recover the frozen assets,” the firm said.
Binance had earlier pledged to use its corporate funds to cover users’ losses arising from the security incident.
The company reiterated its commitment to covering confirmed shortfalls, adding that it would provide further updates as recovery efforts progressed.
“We will continue to use company resources to cover confirmed shortfall and will provide further verified updates as recovery efforts progress,” it said.
The exchange added that users would ultimately be able to verify its funds publicly through its proof-of-reserves system.
