Binance promises to cover hack losses; Molly White questions Zhao's role in early assurances
Changpeng Zhao, who says he no longer manages Binance, said users would be covered after an October 2026 hack. Molly White questions his role. Binance later pledged to cover all losses and says it has set aside over $6.34 billion of company funds.
Case period:
Published by The Dispute Index editorial teamPublished Updated
Overview
After an October 29, 2026 theft from Binance wallets, founder Changpeng Zhao posted at 21:15 UTC that he no longer managed the exchange but, as a shareholder, expected all user funds to be fully covered. About an hour later, quoting an estimate that the net loss was about $1 billion, he wrote that the loss "might be a bit higher than that, but will cover." Binance's first post on the incident, at 21:29 UTC, said user funds were completely safe. Co-CEO Yi He wrote at 00:04 UTC on October 30 that Binance would cover all hacking losses, and the company's account said Binance would cover all losses nine minutes later.
Writer Molly White, publishing at 23:58 UTC on October 29, questioned why Zhao, whom she described as barred from any control over Binance, was the one promising coverage. Later on October 30, Binance said it had reserved more than $6.34 billion of company funds, $5 billion of it already in the affected tokens, and was buying the rest. Co-CEO Richard Teng said withdrawals would stay paused while the service was rebuilt and tested.
Read the full background
Binance's 2023 plea agreement says the company accepted Zhao's resignation as chief executive and prohibited him from any present or future involvement in operating or managing its business. Prosecutors told the court that the prohibition would last until three years after a compliance monitor was appointed. White describes the restriction as a bar on any control; the agreement's words cover operating or managing the business. President Trump pardoned Zhao in October 2025. We found no court filing or Justice Department statement that ends or changes this term of the company's agreement.
Binance's $6.34 billion figure is money the company says it has set aside and is still converting into the stolen tokens. It does not by itself show that losses have been repaid, and Binance says it excludes about $3 billion in frozen assets that are still being recovered.
Timeline
11 timeline entries on this page. Dates: November 21, 2023 to October 30, 2026
November 2023
Binance's plea agreement bars Zhao from operating or managing the company
In its plea agreement with the Justice Department, Binance says it accepted Zhao's resignation as chief executive and prohibited him from any present or future involvement in operating or managing its business. In a court filing, prosecutors list the prohibition among the agreement's material terms and say it ends three years from the date a compliance monitor is appointed.
[01]United States Department of Justice
Binance's plea agreement with the Justice Department, filed November 21, 2023. Among the remedial measures the prosecutors list as considerations, it says Binance accepted Zhao's resignation as chief executive and prohibited him from any present or future involvement in operating or managing its business. Paragraph 7 sets the term of Binance's obligations at three years from the selection of an independent compliance monitor.
Plea agreement, United States v. Binance Holdings Ltd., No. 2:23-cr-00178-RAJ (W.D. Wash.), ECF 23 · United States Department of JusticeParagraph 8(f)(xiii), page 9 of 35; paragraph 7, page 6[02]United States Department of Justice
Court filing by federal prosecutors summarizing the Binance and Zhao plea agreements, as mirrored by CourtListener (RECAP). Page 4 lists among the material terms of Binance's agreement that Binance accepted Zhao's resignation and prohibited him from any present or future involvement in operating or managing its business, and says the prohibition ends three years from the date a monitor is appointed.
Government's memorandum regarding plea proceedings, United States v. Binance Holdings Ltd. and United States v. Zhao (W.D. Wash.), ECF 15 · United States Department of JusticeMaterial terms of the Binance plea agreement, item 3, page 4 of 10
October 2025
Trump pardons Zhao
The White House says President Trump has pardoned Zhao, who pleaded guilty in 2023 and agreed to step down as Binance's chief executive as part of the company's settlement with the Justice Department.
[03]CNBC
CNBC reports that the White House said President Trump had pardoned Zhao, who pleaded guilty in November 2023 and agreed to step down as Binance's chief executive as part of the company's settlement with the Justice Department.
Trump pardons convicted Binance founder Changpeng Zhao · CNBCOpening paragraphs
October 2026
Zhao says he no longer manages Binance and expects user funds to be covered
Source release
Zhao writes that user funds are safe, that it looks like a hack on Binance and that Tether and Circle have frozen funds. He says he no longer manages Binance but, as a shareholder, expects all user funds to be fully covered.
[04]Changpeng Zhao
Zhao's first post on the incident, quoting a news account's report of a Tether freeze. He writes as a shareholder and says he no longer manages Binance.
Zhao says he no longer manages Binance and expects user funds to be covered · Changpeng ZhaoOriginal post and quoted-post contextBinance says it is investigating and that user funds are safe
Source release
In its first post on the incident, Binance says it is aware of reports of a potential security issue, is investigating and that user funds are completely safe.
[05]Binance
Binance's first post about the incident on its main account. It says the company is investigating reports of a potential security issue, that user funds are completely safe and that updates will come through official channels.
Binance says it is investigating a potential security issue · BinancePost at 21:29 UTCZhao says the loss may be higher but will be covered
Source release
Quoting a post that put Binance's net loss at about $1 billion after stablecoin freezes and said Binance could cover it from its balance sheet, Zhao writes that the loss "might be a bit higher than that, but will cover."
[06]Changpeng Zhao
Zhao quotes a post that put Binance's net loss at about $1 billion after stablecoin freezes and said Binance could cover it from its balance sheet. His "higher than that" refers to that estimate.
Zhao says the loss may be higher but will be covered · Changpeng ZhaoOriginal post and quoted-post contextCo-CEO Yi He says Binance will cover all hacking losses
Source release
Binance co-CEO Yi He writes that user funds are safe and that Binance will cover all hacking losses. She says deposits and withdrawals are suspended while the company runs security checks.
[07]Binance
Post by Binance co-CEO Yi He on her own account. She says user funds are safe, that Binance will cover all hacking losses and that deposits and withdrawals are suspended while the company runs security checks.
Yi He says Binance will cover all hacking losses · BinancePost at 00:04 UTCBinance says it will cover all losses
Source release
Binance's account says the company will cover all losses. It says deposits and withdrawals are suspended as a precaution while it runs security checks, freezes funds and works with law enforcement.
[08]Binance
Binance says it is working to resolve the incident and will cover all losses, and that deposits and withdrawals are suspended as a precaution while it runs security checks, freezes funds and works with law enforcement.
Binance says it will cover all losses · BinancePost at 00:13 UTCBinance says losses will be covered from its SAFU fund and company funds
Source release
Binance estimates the total impact at about $6.3 billion, with about $3 billion frozen, and says it will cover all losses from its SAFU fund and company funds. It gives an initial finding on the cause and says it will publish updated proof of reserves once remediation is complete.
[09]Binance
Binance gives its initial account of the incident, estimates the total impact at about $6.3 billion with about $3 billion frozen, and says it will cover all losses from its SAFU fund and company funds. The cause it describes is a preliminary finding.
Binance says it will cover losses from its SAFU fund and company funds · BinancePost at 02:25 UTCZhao calls the remaining gap manageable
Source release
Replying to other users, Zhao gives rough figures of a hack of more than $6 billion, $3 billion frozen and a SAFU fund of more than $1 billion, and puts the gap at about $2 billion. He writes "we have $1.x billion in SPCX alone" and says the remaining gap is "(still painful, but) manageable."
[10]Changpeng Zhao
Zhao's reply to other users giving rough figures for the loss, the frozen amount and the SAFU fund, and calling the remaining gap manageable.
Zhao estimates the remaining gap at about $2 billion · Changpeng ZhaoReply at 09:33 UTCBinance says it has reserved over $6.34 billion of company funds
Source release
Binance says it has reserved more than $6.34 billion of company funds to cover the incident, with $5 billion already in the affected tokens, and is buying the rest. It says the figures do not include about $3 billion in frozen assets that remain subject to recovery and verification.
[11]Binance
Binance says it reserved company funds, is buying remaining token assets and will verify funds through proof of reserves. The statement describes commitments and progress claimed by Binance.
Binance says it reserved over $6.34 billion in company funds · BinancePost at 10:55 UTCCo-CEO Richard Teng repeats the coverage pledge and describes more breach points
Source release
Binance co-CEO Richard Teng says the company is committed to covering all hacked losses through company funds and that withdrawals will stay paused while the service is rebuilt and tested. He says the investigation found additional points of breach, that he hopes withdrawals resume before a Sunday deadline and that a full proof of reserves report will follow by Monday.
[12]Binance
Binance's co-CEO describes company-funded coverage, additional breach points, withdrawal-service rebuilding and intended proof-of-reserves publication.
Richard Teng's transcript of Binance's incident update · BinanceTranscript posted at 14:33 UTC
Claims
Claims separate what was said from what is contested. Follow each source for the original wording and context.
What's disputed
Disputed claim
Binance
Binance has reserved more than $6.34 billion of company funds to cover the incident.
What is disputed
Binance presents the reserve as the money behind its pledge to cover all losses. It is an allocation the company describes, not a completed repayment, and Binance says it excludes about $3 billion in frozen assets.
Sources (1)
- Binance says it reserved over $6.34 billion in company funds · BinancePost at 10:55 UTC
Response record
Responses
Choose one response filter, or select All responses to see the full record.
2 matching responses. Newest first.
BinanceCryptocurrency exchangeDirectly involved Before this statement
Binance says it has begun recovering affected assets for users and that it already committed, in a prior announcement, to cover losses with company funds.
"Binance has already reserved over $6.34B of company funds to cover this incident."
Defended or excusedCase context: Binance promises to cover hack losses; Molly White questions Zhao's role in early assurances
Full statement and sources
Binance says it has reserved more than $6.34 billion of company funds to cover the incident and is buying the remaining affected tokens.
After the statement
Binance says $5 billion of the reserve is already held in the affected tokens and that it is buying the rest through market and OTC channels. It says the figures do not include about $3 billion in frozen assets that remain subject to recovery and verification, and that user funds will be verified through its proof of reserves.
Binance says it reserved over $6.34 billion in company funds · BinancePost at 10:55 UTCWhy this label?
Relative to the public assurances that users' losses would be covered, Binance stands behind the promise and describes the company funds it has set aside for it.
This label describes the statement's response within the context above.
Molly WhiteIndependent writer and cryptocurrency researcherDirectly involved Before this statement
White writes that Zhao is legally not allowed to have any active role with Binance. She quotes his posts saying he no longer manages the exchange but, as a shareholder, expects all user funds to be fully covered, and later that the loss "might be a bit higher than [$1 billion], but will cover."
"Why a person who is barred from any control over Binance would be the one promising this is an exercise I will leave to the reader."
CondemnedCase context: Binance promises to cover hack losses; Molly White questions Zhao's role in early assurances
Full statement and sources
White questions why Zhao, whom she describes as barred from any control over Binance, is the one promising that losses will be covered.
After the statement
White notes that Binance's insurance fund was last reported at about $1.3 billion. She writes that unless more is recovered, Binance will either fail to make users whole or dip into its own balance sheet.
North Korea gets away with $3 billion from Binance · Molly WhiteZhao assurance quotations and the paragraph questioning his roleWhy this label?
Relative to the assurances that users would be covered, White criticizes Zhao for giving them, pointing to what she describes as a bar on his control of Binance.
This label describes the statement's response within the context above.
Sources
(13)
Original post
Binance says it reserved over $6.34 billion in company funds
About this source
Binance says it reserved company funds, is buying remaining token assets and will verify funds through proof of reserves. The statement describes commitments and progress claimed by Binance.
- Author
- Binance
- Published
- Accessed
Original post
Zhao estimates the remaining gap at about $2 billion
About this source
Zhao's reply to other users giving rough figures for the loss, the frozen amount and the SAFU fund, and calling the remaining gap manageable.
- Author
- Changpeng Zhao
- Published
- Accessed
Original post
Binance says it will cover losses from its SAFU fund and company funds
About this source
Binance gives its initial account of the incident, estimates the total impact at about $6.3 billion with about $3 billion frozen, and says it will cover all losses from its SAFU fund and company funds. The cause it describes is a preliminary finding.
- Author
- Binance
- Published
- Accessed
Original post
Binance says it will cover all losses
About this source
Binance says it is working to resolve the incident and will cover all losses, and that deposits and withdrawals are suspended as a precaution while it runs security checks, freezes funds and works with law enforcement.
- Author
- Binance
- Published
- Accessed
Original post
Yi He says Binance will cover all hacking losses
About this source
Post by Binance co-CEO Yi He on her own account. She says user funds are safe, that Binance will cover all hacking losses and that deposits and withdrawals are suspended while the company runs security checks.
- Author
- Yi He
- Published
- Accessed
Original post
Binance says it is investigating a potential security issue
About this source
Binance's first post about the incident on its main account. It says the company is investigating reports of a potential security issue, that user funds are completely safe and that updates will come through official channels.
- Author
- Binance
- Published
- Accessed
Reporting
Trump pardons convicted Binance founder Changpeng Zhao
Relevant passage: Opening paragraphs
About this source
CNBC reports that the White House said President Trump had pardoned Zhao, who pleaded guilty in November 2023 and agreed to step down as Binance's chief executive as part of the company's settlement with the Justice Department.
- Author
- Dan Mangan and Kevin Breuninger
- Published
- Accessed
Original text
Government's memorandum regarding plea proceedings, United States v. Binance Holdings Ltd. and United States v. Zhao (W.D. Wash.), ECF 15
Relevant passage: Material terms of the Binance plea agreement, item 3, page 4 of 10
About this source
Court filing by federal prosecutors summarizing the Binance and Zhao plea agreements, as mirrored by CourtListener (RECAP). Page 4 lists among the material terms of Binance's agreement that Binance accepted Zhao's resignation and prohibited him from any present or future involvement in operating or managing its business, and says the prohibition ends three years from the date a monitor is appointed.
- Author
- U.S. Department of Justice
- Published
- Accessed
Original text
Plea agreement, United States v. Binance Holdings Ltd., No. 2:23-cr-00178-RAJ (W.D. Wash.), ECF 23
Relevant passage: Paragraph 8(f)(xiii), page 9 of 35; paragraph 7, page 6
About this source
Binance's plea agreement with the Justice Department, filed November 21, 2023. Among the remedial measures the prosecutors list as considerations, it says Binance accepted Zhao's resignation as chief executive and prohibited him from any present or future involvement in operating or managing its business. Paragraph 7 sets the term of Binance's obligations at three years from the selection of an independent compliance monitor.
- Author
- U.S. Department of Justice
- Published
- Accessed
Original post
Zhao says the loss may be higher but will be covered
About this source
Zhao quotes a post that put Binance's net loss at about $1 billion after stablecoin freezes and said Binance could cover it from its balance sheet. His "higher than that" refers to that estimate.
- Author
- Changpeng Zhao
- Published
- Accessed
Original post
Zhao says he no longer manages Binance and expects user funds to be covered
About this source
Zhao's first post on the incident, quoting a news account's report of a Tether freeze. He writes as a shareholder and says he no longer manages Binance.
- Author
- Changpeng Zhao
- Published
- Accessed
Analysis
North Korea gets away with $3 billion from Binance
Relevant passage: Zhao assurance quotations and the paragraph questioning his role
About this source
Molly White's post on her Citation Needed site. She questions Zhao's role in promising that losses would be covered and writes that Binance would otherwise have to draw on its own balance sheet. White revised the post on October 29 and 30 as estimates changed. It was first headlined "Attacker gets away with up to $3 billion from Binance"; the current headline reflects a blockchain analytics firm's attribution of the theft, which we have not verified. The passage quoted appears in the version archived at 03:34 UTC on October 30.
- Author
- Molly White
- Published
- Accessed
Original post
Richard Teng's transcript of Binance's incident update
About this source
Binance's co-CEO describes company-funded coverage, additional breach points, withdrawal-service rebuilding and intended proof-of-reserves publication.
- Author
- Richard Teng
- Published
- Accessed
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- Publisher
- The Dispute Index
- Title
- Binance promises to cover hack losses; Molly White questions Zhao's role in early assurances
- First published
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- https://disputeindex.com/cases/binance-hack-loss-coverage-cz-assurances
The Dispute Index. "Binance promises to cover hack losses; Molly White questions Zhao's role in early assurances". First published: 2026-10-30. Last updated: 2026-10-30. https://disputeindex.com/cases/binance-hack-loss-coverage-cz-assurances