How Binance Plans To Cover $6 Billion Hack Without Hitting Customers
Photo: Coinpedia
Binance says customer balances are untouched by this week’s hack because the stolen crypto came from one of its own hot wallets, which the exchange legally owns. A Binance spokesperson explained the setup to journalist Eleanor Terrett. When users deposit crypto on an exchange, the platform typically takes ownership of the assets and credits each customer with a claim on them. Retail holdings are usually pooled in a shared account, and each customer is entitled to a proportional share. The drained wallet held assets that backed those claims, so the loss falls on Binance first.
Source: Coinpedia
