Binance: The compensation ratio for stolen assets has increased to 90%, and withdrawals are still planned to resume on Sunday

Binance released a security incident update stating that the company had previously reserved over $6.34 billion of company funds to cover the stolen losses, with the coverage ratio at approximately 80% at that time, which has now increased to 90%. BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC have achieved 100% coverage, while the remaining related tokens will continue to be purchased through market and over-the-counter channels until the coverage ratio for all tokens reaches 100%. Binance stated that the financial impact of the stolen funds would be borne by the platform, not the users.

The replenishment of funds comes from a partial drawdown of the user security asset fund SAFU, a portion of the contract insurance fund, and Binance's company funds. The partial drawdown of SAFU is expected to occur within the next 24 hours. The remaining 10% consists of assets outside the aforementioned ten tokens with lower liquidity, and the time required for purchase may be longer. Binance completed a new reserve proof snapshot at 00:00 (UTC) on October 31 and updated it on the reserve proof page, with the complete zero-knowledge proof expected to take 40 to 50 hours to generate, around November 3 (UTC). Withdrawal services will continue to proceed according to the previous schedule, with plans to reopen on Sunday, November 1.

Binance introduced that SAFU was established in July 2018 and is held and managed by Nest Clearing and Custody Limited, regulated by the Financial Services Regulatory Authority of Abu Dhabi Global Market. The company commits to replenishing the scale of SAFU to approximately $1 billion and clarifies that the partial drawdown of SAFU is for purchasing the remaining 10% of assets. After withdrawing the balance exceeding the prescribed level, the contract insurance fund still exceeds the coverage level required by the existing risk management framework; if the balance falls below the requirement, Binance will make up the difference with company funds.