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Binance hack: Are customer funds safe? CZ says losses will be covered ‘in all likelihood’

By Darius McQuaid

16:48, 10 October 2022

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BNB/USD
Binance Coin / USD
336.86 USD
0.6 +0.180%

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In this photo illustration, the logo of Binance, a cryptocurrency exchange is displayed on a smartphone screen
Because of the hack, the BNB Chain was temporarily halted on 6 October - Photo: Getty Images

After the Binance cryptocurrency exchange lost $100m (£90m) in a hack last week, its CEO, Changpeng Zhao (CZ), has revealed that the stolen funds will “in all likelihood” be covered and reimbursed to customers.

The native crypto of the world’s largest cryptocurrency exchange by trading volume, BNB, was down 1.08% to $274.76 on 10 October, according to CoinMarketCap.

A vulnerability on the BNB Chain’s cross-chain bridge, known as the BSC Token Hub, saw roughly $570m (£515m) in BNB targeted by an attacker. However, Zhao said the hacker was only able to escape with around $100m.

Zhao reassured investors via Twitter that the issue was “contained”, and their funds were safe.

‘Something we can learn from’

Because of the hack, the BNB Chain was temporarily halted on 6 October. However, Zhao said the hack was something he himself and Binance could learn from.

After the hack he tweeted “Some setbacks make you stronger. Never waste an opportunity.”

LUNC/USD

0.00 Price
-6.140% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee -0.0500%
Overnight fee time 22:00 (UTC)
Spread 0.00000794

XRP/USD

0.41 Price
-0.540% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00343

BTC/USD

23,391.35 Price
-0.200% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

DOGE/USD

0.10 Price
+2.530% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0012113

Bitgert (BRISE), replying to Zhao’s tweet, said:  “The hack wasn’t a setrback, but a price that you paid for the better future of BNB.”  

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‘We own this’

BNB Chain’s official response started with an apology “First, we want to apologize to the community for the exploit that occurred. We own this.”

Binance said that as “decentralised chains are not designed to be stopped”, it had to contact its community validators one by one “to stop the incident from spreading”.

The crypto exchange said that a vote will take place to decide whether or not to freeze or not to freeze the hacked funds or even offer “a bounty for catching the hackers, up to 10% of the recovered funds”.

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