Binance CFO Kaiser Ng Departs Amid Aftermath of $6.3 Billion Hack
Binance CFO Kaiser Ng Departs Amid Aftermath of $6.3 Billion Hack
Kaiser Ng is leaving his role as chief financial officer at cryptocurrency exchange Binance, according to reports from TechCrunch. His departure comes shortly after the platform disclosed a massive $6.3 billion security breach. Justin Yek has been appointed to replace Ng, who served in the position since January 2022.
Kaiser Ng is departing from his position as chief financial officer at cryptocurrency exchange Binance, TechCrunch reported on Saturday. The executive's exit follows closely on the heels of a massive security breach in which hackers stole approximately $6.3 billion in digital assets from users.
Justin Yek will assume the role of CFO, replacing Ng after more than five years with the company. Yi He, Binance’s co-Chief Executive Officer, stated that Ng chose to leave for a new venture and that a transition plan had been in place for the past six months. In a statement carried by Bloomberg, Yi He said, "We wish him the best in his next chapter."
Ng has served as Binance's CFO since January 2022. According to his LinkedIn profile and Reuters reporting, he previously worked at rival exchange Kraken. Yek, his successor, most recently held the position of vice-president of finance at Airwallex. Global Banking & Finance Review noted that Yek is a former banker at Morgan Stanley and Citi.
The leadership change occurs just over a week after the theft on October 29. Hackers drained about $6.34 billion in roughly 20 minutes, with approximately $2.85 billion frozen or intercepted by security measures, according to an account republished by Yahoo Finance from TheStreet.
Binance stated that the attack originated from malware hidden in software downloads and fake recruitment approaches targeting engineers. Several employees' computers were compromised months prior to the theft. By October 20, attackers had used a compromised computer and an internal AI tool to reach two other engineers, according to TheStreet. An independent review of the incident is still pending.
The FBI has blamed a North Korean group known as TraderTraitor for the breach, a claim Binance has echoed. Pyongyang has denied involvement in the attack. Yahoo Finance noted that former U.S. President Donald Trump stated that North Korea's role was not certain.
Following the breach, Binance froze withdrawals for several days. When accounts were unfrozen, users withdrew a net $3.6 billion in the first few hours, according to TechCrunch. The reopening of withdrawals was phased, initially allowing access to 15 cryptocurrencies, including Bitcoin, Ether, Dogecoin, and certain USDC and USDT stablecoins. Binance prioritized these tokens based on customer demand over the preceding week.
The exchange has committed to covering the financial impact of the stolen funds. In a statement quoted by TechCrunch, Binance confirmed that users will not be made to bear losses from the hack. To replace the stolen assets, the company utilized its Secure Asset Fund for Users (SAFU), its Futures Insurance Fund, and its corporate treasury. Yahoo Finance reported that these measures replaced about 95% of the stolen cryptocurrency.
The remaining 5% consists of coins that are harder to obtain in large quantities. The original assets have not necessarily been recovered from the hackers.
L.Navarro--LGdM
