Binance Recovers 90% of $6.3B Hack Losses – Withdrawals Set to Resume

TLDR;

• Binance recovers 90% of the cryptocurrency stolen in its record-breaking $6.3 billion security breach, with the exchange targeting Sunday, November 1, to resume customer withdrawals.
• Binance has made further progress in recovering from one of the largest cryptocurrency thefts on record.
• The exchange also confirmed that customers holding ten major cryptocurrencies are now fully backed, as it continues working to replace the remaining stolen assets.

The latest recovery figure represents an increase from the approximately 80% coverage reported in its previous update. According to Binance, the outstanding 10% consists primarily of less-liquid tokens that require additional time to acquire through market purchases and over-the-counter (OTC) transactions.

Co-CEO Richard Teng reiterated that the exchange would absorb the financial impact of the incident rather than pass the losses on to customers.

Binance Uses SAFU Reserves and Corporate Funds to Cover Losses

To finance the recovery, Binance has allocated approximately $6.34 billion in company resources, drawing from three separate sources: its Secure Asset Fund for Users (SAFU), its Futures insurance fund, and its corporate treasury.

The exchange confirmed that Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USDC, XRP, USD1, RLUSD, and Zcash (ZEC) are now fully backed.

Binance is also working with industry partners to acquire the remaining tokens and bring coverage across all affected assets to 100%.

The announcement follows a major security breach that resulted in approximately $6.3 billion worth of cryptocurrency being stolen. Binance previously described the incident as a sophisticated attack involving a compromised laptop and malicious software intended to erase evidence.

Proof of Reserves Update and Withdrawals Remain in Focus

Alongside its recovery efforts, Binance has published a new Proof of Reserves snapshot dated October 31. The exchange said the updated figures will allow customers to verify that their holdings are backed on a 1:1 basis once the full zero-knowledge proof is generated.

The cryptographic verification process is expected to take approximately 40 to 50 hours, with completion anticipated by November 3.

Meanwhile, restoring withdrawal services remains the exchange’s immediate priority. Binance said it remains on track to reopen withdrawals on Sunday, November 1, although further confirmation is expected.

While replacing 90% of the stolen assets represents significant progress, the incident has raised fresh questions about centralized exchange security and the risks associated with holding large amounts of cryptocurrency on trading platforms.