Some further clarity on Binance’s claim that customer funds are safe: The assets were drained from one of its hot wallets, which Binance controlled and is the legal owner of. What does that mean? Generally, when you deposit crypto on an exchange, the exchange becomes the owner and gives you a claim on their assets. Retail customer assets are generally accounted for in an omnibus account with all other retail customer assets, and customers have a claim on a pro rata share. A spokesperson confirmed this to Crypto in America and said the assets were technically Binance’s funds, and represented customers’ ownership claims for crypto on the exchange. Binance holds crypto in its wallets and credits customers’ accounts with the assets bought on their behalf. Binance says it is replacing the stolen assets so customers’ account balances and values remain unchanged. Had Binance not had sufficient funds to account for the stolen assets, some customers may have had their recovery reduced, or received a “haircut.” The exchange says it has reserved more than $6.34 billion in company funds to cover the incident.