Binance founder CZ addresses 6.3 billion dollar hack losses

Binance founder Changpeng Zhao, known as CZ, stated that the company is covering the approximately 6.3 billion dollar loss resulting from a recent hack using its own balance sheet. He emphasized that Binance did not borrow money, sell assets, or seek external fundraising to address the deficit, distinguishing this incident from previous industry collapses like FTX or Mt. Gox.

According to CZ, funds have been 100 percent allocated to cover the affected assets, with only about 5 percent remaining in the process of converting low-liquidity small-cap coins. Major assets including BTC, ETH, USDT, and BNB have been fully replenished. The company has also updated its Proof of Reserves to allow user-side verification for ten major cryptocurrencies.

Separately, security concerns regarding juice jacking have resurfaced following the Binance hack. Experts warn that public USB charging ports at airports or transit hubs can potentially be used to install malware or steal data via the data pins in the USB connection. While manufacturers like Apple and Google have implemented security prompts to prevent unauthorized data connections, experts recommend using wall outlets with personal chargers or portable power banks to ensure safety.