Binance has replaced every stolen coin, your balances are whole
Binance announced late on Thursday, November 12, that it had finished replacing all the crypto stolen in the October 29 hack. The exchange says it put in more than $6.34 billion of its own money, taken from its emergency fund (SAFU, a reserve set aside for emergencies), from an insurance fund and from its treasury. It bought the missing tokens on the market over two weeks. No customer had to file anything. The same day, US prosecutors obtained court approval to seize more than $1.2 billion of the loot.
If you have a Binance account, your balance is whole and this replacement changes nothing for your taxes: nothing was sold in your name. Withdrawals are still reopening network by network. If you are a Binance France customer, your account closes on December 31 anyway, with fees from November 29. Now is the time to move your crypto to a crypto wallet (an app where you hold your own keys) or to an exchange licensed in France.
Binance: the $6.34 billion from the hack replaced, US prosecutors seize $1.2 billion
Binance posted on X on Thursday, November 12, at 5:49 p.m. Paris time: coverage of the assets affected by the October 29 hack is complete. More than $6.34 billion of company funds went into it, drawn from SAFU, from the surplus of the futures insurance fund and from the treasury. Tokens were bought back on the market and over the counter within two weeks, 90% by October 31, 98% by November 4. Binance commits to rebuilding SAFU to about $1 billion, with no date.
A new proof-of-reserves snapshot was taken on November 12 at 1 a.m. Paris time, covering 198 tokens, against 10 on October 31. The cryptographic proof that lets each customer check their balance comes 40 to 50 hours later, so this weekend. In the meantime, the reserves page shows 100.05% for bitcoin, 100.02% for ether and 104.34% for USDT. The same day, US prosecutors obtained court authorization to seize or restrain more than $1.2 billion of the loot, out of more than $2.7 billion already frozen. BNB traded between $630 and $640 on Friday, its lowest since August.
Replacing is not recovering. Binance filled the hole on its own books, and the frozen funds, if they ever come back, will go to the exchange. For you, the displayed balance counts as a deposit and there is nothing to declare. Binance France customers have until December 31 to leave, with fees from November 29.
Read the expert version
Binance: $6.34B covered, proof of reserves on 198 tokens, $1.2B seized
Binance's post landed on November 12 at 4:49 p.m. London time: "Binance has completed coverage of assets impacted in the security incident". More than $6.34 billion of company funds, split between SAFU, the surplus of the futures insurance fund above the level its risk framework requires, and the treasury, with no breakdown published. SAFU had sold 7.499 of its 15.000 BTC on October 31. Binance promises to bring it back toward $1 billion, with no timetable. The few affected tokens that are no longer listed go through the delisting process, with holders still covered.
The November 12 snapshot at 00:00 UTC covers 198 tokens. The ZK proof is announced 40 to 50 hours later and was not online by Friday noon. On Friday the reserves page showed 100.05% for BTC, 100.02% for ETH and 104.34% for USDT, about 1.06 billion USDT above customer balances according to Unchained. The DOJ (press release 26-1356) puts the collective freeze at more than $2.7 billion ($2.85 billion "subject to verification" for Binance) and the seizure or restraint authorization at more than $1.2 billion. The rest of TraderTraitor's loot is moving through bridges, mixers and exchanges.
Still unknown: the split between SAFU, insurance fund and treasury, and the list of networks where withdrawals remain closed. Seized funds would go back to Binance, which has already paid out, not to its customers. For French tax purposes, the replacement is neutral: no disposal in the customer's name, the balance is read as is. A withdrawal to a wallet whose keys you hold remains a transfer outside the scope of article 150 VH bis of the French tax code. A sale into euros to leave Binance France before December 31 is a taxable disposal at the 30% flat tax.
