Binance Sets Aside $6.34 Billion After Record Crypto Hack as Issuers Freeze Assets

Binance has arranged $6.34 billion of its own funds to cover losses from what has been described as a record crypto hack, according to CoinDesk. The exchange said the reserve includes roughly $3 billion in stolen assets that have been frozen.

Stablecoin issuers Tether and Circle, along with other industry participants, acted within hours of the breach to immobilize billions of dollars in assets tied to the theft, CoinDesk and Cointelegraph reported.

According to Cointelegraph, the attackers moved quickly to convert stolen stablecoins into cryptocurrencies that issuers are unable to freeze, limiting the amount that could be locked down.

Legal experts remain divided over the effectiveness of the asset freezes, CoinDesk reported. Some questioned whether smaller victims would receive the same level of protection, and warned that freezing stolen funds does not guarantee their recovery.