Binance has reserved more than $6.34 billion in company funds to cover losses linked to an incident affecting user assets, as the cryptocurrency exchange continues efforts to recover funds and address outstanding asset shortfalls.
In its latest announcement, Binance said $5 billion of the reserved funds is already held in the same cryptocurrencies that were affected by the incident. The company is now purchasing the remaining required tokens through open-market transactions and over-the-counter (OTC) channels.
The decision comes after the prior pledge by Binance to make use of their own money in compensation for the losses incurred by the users. The exchange added that their first concern is to have an adequate supply of the affected tokens to offset any shortfalls identified.
However, acquiring them might take more time. According to Binance, some of the affected cryptos may be of low liquidity in the market. That makes it hard to get large amounts within a short period.
Separately, Binance disclosed that approximately $3 billion in affected assets has been frozen with assistance from industry partners. These funds are not included in the $6.34 billion the company has reserved to cover the incident.
The exchange said it is working with law enforcement agencies, token issuers, blockchain intelligence firms and other industry participants to trace additional assets, prevent further movement of identified funds and pursue recovery.
Binance also confirmed that it has begun recovering affected assets, although it did not disclose the total amount successfully recovered so far.
The company’s decision to acquire the impacted cryptocurrencies, rather than relying solely on the dollar value of its reserves, is intended to address shortfalls in the specific tokens involved.
Binance said it would continue deploying company resources to cover confirmed shortfalls while recovery and verification efforts remain underway.
The exchange also pledged that user funds would ultimately be subject to public verification through its Proof of Reserves system.
For affected users, the key outstanding questions are how quickly Binance can obtain the remaining tokens and what portion of the frozen assets can be successfully recovered.
Binance said it would release further updates as additional progress is verified, reaffirming its commitment to covering confirmed losses despite the ongoing recovery process.
“We will weather this storm. Thank you for the support,” the company said at the conclusion of its announcement.
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