Binance Responds to Fund Security Concerns: Majority of Customer Funds Held in Cold Wallets, Stolen Assets from Company's Hot Wallet

October 30 - Crypto journalist Eleanor Terrett reported that in response to questions about why Binance still claims user funds are safe after suffering an approximately $6 billion hack, a Binance spokesperson stated that customer funds were unaffected and the transferred funds came from one of the exchange's own hot wallets. Binance said most customer funds are stored in cold wallets and are only transferred to hot wallets when users make withdrawals.

The spokesperson stated that Binance holds most of its daily operating income in crypto assets, retains a significant portion of it, and reinvests in the business and security infrastructure because it believes in the long-term value of crypto assets and the industry. He said: "This is precisely why we were able to immediately absorb losses of such magnitude with our own funds."