Binance may recover little of $6.3B hack losses through insurance: Report

Binance’s $6.3 billion hack could leave the exchange facing substantial losses despite its insurance arrangements, as crypto companies struggle to obtain cyber coverage and the existing policies often contain exclusions for state-backed attacks.

The exchange has directors and officers insurance that could protect executives from litigation or regulatory probes, but it has not been able to obtain cyber insurance, Bloomberg Law reported Tuesday, citing a person familiar with the matter.

The FBI linked North Korea to the hack, a finding that could complicate insurance claims if policies exclude losses caused by state-sponsored attacks or cyberwarfare. Insurance attorneys say coverage may still be available depending on how the attackers gained access to Binance’s systems and where the stolen assets were stored.

However, Pyongyang pushed back against the FBI’s findings. In a statement published by state news agency KCNA, Kim Yo Jong, the sister of leader Kim Jong Un, accused the US of using the allegations to portray the country as a “cyber criminal state.”

Binance has been drawing on corporate accounts alongside emergency and insurance funds to reimburse affected users.

The exchange has now restored approximately 95% of the affected assets. The remaining 5% consists of less liquid tokens that the exchange is still sourcing through market purchases and over-the-counter transactions.

Binance is still investigating how the attackers gained access to its infrastructure. Initial findings suggested a compromised employee laptop may have been involved, while subsequent investigations identified additional points of compromise.

The exchange has found no evidence of leaked wallet private keys and has pledged to release a detailed technical report outlining the breach and its security response.