Binance freezes $3bn in stolen crypto, sets aside $6.34bn for user compensation

Binance has earmarked over $6.34 billion to compensate users after a major security breach, with about $3 billion in affected assets already frozen, the exchange announced on Friday, October 30. The exchange is purchasing missing tokens through market and over-the-counter channels to match original assets, though limited liquidity may delay completion. Binance is working with law enforcement and industry partners to recover frozen funds, which may require further investigations and legal action. Binance pledged customers can verify holdings through its proof-of-reserves system, using corporate resources to cover verified shortfalls. The exchange has not specified a timeline for completing compensation, while Nigerian traders and others face ongoing digital asset security concerns.