Binance planned to rely on internal funding pools to restore assets after a hot-wallet attack whose impact it estimated at about $6.3 billion, while Bloomberg reported it lacked cyber insurance.
Bloomberg, citing a person familiar with Binance’s business, also reported that the exchange had directors and officers (D&O) coverage. The Insurer separately reported, citing a source close to Binance, that the Secure Asset Fund for Users (SAFU) had no external insurance or reinsurance.
The Insurer said the policy could address claims alleging failures in executives’ oversight, but would not reimburse Binance for the assets taken. That leaves a distinction between coverage for potential claims involving company leaders and insurance that would replace missing crypto. The Insurer also reported that exclusions in policies available to digital-asset firms can limit potential payouts.
Binance said it would absorb the financial impact rather than pass it to users. The exchange planned to use three pools of funds: SAFU, its Futures Insurance Fund and company resources. EconoTimes previously reported on Binance’s funding commitment and the insurance findings.
In a Nov. 1 update, Binance said it had restored about 95% of the affected assets. The exchange put the remaining 5% in less-liquid tokens and did not set a date for completing purchases. It said purchases would continue through market transactions and over-the-counter (OTC) deals.
The remaining purchases are the next step in Binance’s restoration plan, but the exchange has not said when they will be complete. EconoTimes covered Binance’s replenishment update.
