🚨 Binance Co-CEO Richard Teng: Company Funds Fully Cover Losses; Withdrawals Targeted for Restoration by Sunday; PoR Expected Monday Binance Co-CEO @_RichardTeng released a security incident update video, along with a full transcript. He reaffirmed: the company is committed to covering all losses from the breach with its own funds; user assets are secure; and efforts are underway to recover stolen assets. 📌 Key Highlights: ・Funds: Over $6.34 billion in company funds have been reserved; approximately $5 billion is already held in the same assets affected (e.g., $USDC, $USDT, $BTC, $ETH, $BNB, etc.); the remainder is being replenished via market and OTC channels. ・User Funds: Binance never uses client funds; the affected wallets were Binance’s own hot wallets; user assets are primarily stored in cold wallets and only enter hot wallets during withdrawal requests. ・Proof: Users are encouraged to verify their account balances; an initial Proof of Reserves (PoR) audit is targeted for public verification on Monday, with an early overview expected before then. ・Nature of Attack: Not the work of a single individual; initial findings suggest a laptop was compromised, with further investigation uncovering additional entry points; the attack was complex and included self-destruct mechanisms to erase tools and traces. ・Technical Pathway: Attackers exploited EIP-7702 to gain on-chain execution authorization over hot wallets, and this delegation bypassed standard approval controls—hence the temporary suspension of withdrawals for comprehensive investigation, infrastructure reconstruction, and retesting. ・Current Status: Withdrawal services are being rebuilt and will not go live until they pass rigorous testing; “very confident” withdrawals will be restored by Sunday’s deadline, with progress already on track within approximately 40 hours; a full company-wide security review is underway (endpoints, cloud, key management, signing, etc.); collaboration with law enforcement, on-chain intelligence providers, token issuers, and other exchanges to trace and recover stolen assets.
