Binance Sets Aside $6.34B to Cover Hack Losses, CEO Says 'Your Assets Are Safe'

Richard Teng said the attacker used a self-destruct mechanism and an EIP-7702 delegation that bypassed Binance's normal approval controls.

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Technical Mechanism of the Hack and EIP-7702 Impact: The attack involved a multi-stage breach of a hot wallet starting from a compromised laptop. While EIP-7702 allowed standard wallets to execute smart contract code, it was not the vulnerability that initiated the breach but rather served to amplify the impact by bypassing standard approval controls during the fund exfiltration process.
Recovery Strategy and Financial Backing: Binance has allocated $6.34 billion in company funds—including $5 billion in the specific tokens stolen—to indemnify affected systems and ensure no customer funds are impacted. Management has clarified that the company’s annual revenue is sufficient to cover these losses, explicitly stating that it does not need to liquidate significant internal holdings like its SpaceX stake.