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Binance Announces $10 Million Resolution Plan for COVER Losses



Binance Announces $10 Million Resolution Plan for COVER Losses
  • Binance on Dec 31st announces the resolution plan of $10 million for COVER losses.
  • COVER smart contract was attacked on 28th Dec 2020.
  • This incident leads to severe damage to the market cap of COVER as the prices dropped heavily within hours.

Binance, the worlds largest cryptocurrency exchange announced a resolution plant for COVER losses. As you know the COVER smart contract was attacked by infinite minting attack on 28th Dec 2020.

As a result of this attack COVER smart contract was managed to mint more token than the circulating supply. This large number of the minted token was then bought by arbitrageurs on decentralized exchanges and deposited on Binance. The hackers were able to swap these tokens for ETH, DAI, and WBTC.

As a result of this, the prices of the COVER token starts declining at an alarming rate. Due to the sharp decline in price many Binance users faced significant loss. The hackers were able to steal about $4 million worth of cryptocurrency.

Now, Binance has announced a $10 million to users who hold the COVER token on its platform. According to the official announcement, “Binance will utilize the Binance SAFU Fund to recompense a total of $10,107,505 USD (distributed in 8,171,634.10 BUSD and 2,581.16 ETH) to affected and eligible users”.

All the compensation will be covered from the Binance’s SAFU fund.

Disclaimer: Koinalert’s content is only for information purpose in nature and should not be considered as investment advice. Do your own market research before investing in any cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.

Ashish is a cryptocurrency journalist who has been passionately involved in the bitcoin space since 2016. His interests lie in bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.