Binance Withdraws 50% of SAFU Bitcoin Reserves, Publishes Proof of Assets
Following a transfer connected to the recent security breach, Binance's publicly reported SAFU Bitcoin reserves were cut in half, as the platform simultaneously published reserve attestation data for 10 digital assets.
The publicly visible emergency Bitcoin reserve maintained by Binance contained approximately 50% of its prior holdings on Monday following the platform's utilization of its customer protection fund to compensate for damages stemming from last Thursday's unprecedented $6.3 billion security breach.
On Saturday, the trading platform verified a withdrawal of 7,499 Bitcoin (BTC), associating the transaction with a limited activation of its Secure Asset Fund for Users (SAFU).
By Monday's records, the designated wallet contained approximately 7,500 BTC, valued at $583 million, representing a significant decline from the roughly 15,000 BTC balance recorded prior to the withdrawal.
The security breach, marking the most substantial theft in the history of digital currencies, compelled Binance to halt withdrawal operations while the organization worked to restore the compromised assets. On Saturday, the FBI designated North Korea as the perpetrator of the attack, naming the hacking group TraderTraitor.
Beginning Sunday, Binance initiated a gradual restoration of withdrawal capabilities and reported that it had successfully replaced around 95% of the compromised assets, an improvement from the 90% figure announced one day prior. The platform maintained its efforts to acquire the outstanding, lower-liquidity tokens via market purchases and over-the-counter deals.
To compensate for the deficit, the trading platform is deploying resources from its corporate treasury, SAFU reserves, and a portion of its futures insurance fund.
SAFU policy sets no deadline to replace funds used after hacks
The SAFU policy established by Binance details consistent oversight and rebalancing procedures to maintain the fund's market valuation.
If the fund's market value falls below US $800 million due to BTC price fluctuations, Binance will rebalance the fund to restore its value to $1 billion.
However, the policy documentation does not establish a specific timeframe for restoring funds that have been withdrawn in response to a security breach.
At the time of publication, Binance had not provided responses to Cointelegraph's inquiries regarding the current state of SAFU's remaining assets, potential additional withdrawals, and strategies for replenishing the emergency fund.
Binance releases verification proof for post-hack reserves
On Monday, Binance announced that platform users could now authenticate their individual balances against the Saturday proof-of-reserves documentation following the completion of the associated cryptographic verification process.
According to the exchange's statement, the documented snapshot demonstrated that client assets across 10 digital currencies, including Bitcoin, Ether and USDT, maintained backing ratios of at least 1:1.
The trading platform has scheduled an additional snapshot encompassing a broader range of tokens for Wednesday, with the corresponding cryptographic proof anticipated to require an additional 40 to 50 hours for completion and generation.