After the COVER smart contract experienced an infinite minting attack on 2020/12/28, a large number of minted COVER tokens (greater than the COVER circulating supply) were bought by arbitrageurs on decentralized exchanges and deposited on Binance, causing the price of COVER to decrease at an alarming rate, and resulted in many Binance users experiencing significant losses.

In addition to the compensation plan from the COVER team, Binance will utilize the Binance SAFU Funds 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, with the details listed out below:

• For Binance users who did not trade COVER: If a user’s COVER balance on Binance at the ETH Snapshot Time was equal to their balance at the time of the Trading Stop Time, then this user will receive COVER-new at a 1:1 ratio based on their COVER-old balance at the ETH Snapshot Time.
• For Binance users who bought COVER after the ETH Snapshot Time: If a user’s COVER balance on Binance at the ETH Snapshot Time was lower than their balance at the Trading Stop Time: This user will receive COVER-new at a 1:1 ratio based on their COVER-old balance at the ETH Snapshot Time.
• For each user’s net purchased COVER amount, Binance will compensate users out of pocket with the price that they originally purchased the COVER tokens for in either ETH or BUSD. This compensation will be covered in full by the Binance SAFU Fund and totals $10,107,505.79 USD (consisting of 8,171,634.10 BUSD and 2,581.16 ETH).
• For Binance users who sold COVER after the ETH Snapshot Time: If a user’s COVER balance on Binance at the ETH Snapshot Time was higher than their balance at the Trading Stop Time, this user will receive COVER-new at a 1:1 ratio based on their COVER-old balance at the Trading Stop Time.
• Binance will not make any additional compensation for users that only deposited tokens between the ETH Snapshot Time and the Trading Stop Time.
• COVER-new will assume the COVER ticker going forward. COVER-old tokens will be renamed as COVEROLD on Binance.
• Binance will complete the distribution of COVER-new, ETH and BUSD to all affected and eligible users as part of the compensation plan after receiving the new COVER token. A further announcement will be made once the distribution is complete.
• Withdrawals for COVER-old will be closed after this announcement. Withdrawals for COVER-new will open once the distribution is completed.
• Binance will determine whether or not to open trading for COVER-new at a later date.