UPDATE: Binance covers 95% of hack losses and begins phased withdrawals
CIE News ·
Update to UPDATE: Frozen funds hit $2.85B after $6.43B Binance hack attributed to TraderTraitor
Confirmed by 2 independent news outlets.
Binance has covered 95% of customer losses from reserves and reopened withdrawals in phases following an exploit that drained an estimated $6.3 billion on October 29.
Binance announced on November 1, 2026, that it has covered approximately 95% of customer losses using its Secure Asset Fund for Users (SAFU) and internal corporate funds, beginning a phased resumption of withdrawals. As previously reported, industry partners froze roughly $2.85 billion in stablecoins after the exchange suffered an exploit on October 29 that drained an estimated $6.3 billion from its hot wallets.
Following alerts coordinated with agencies including the Federal Bureau of Investigation (FBI), U.S. Secret Service, and Internal Revenue Service Criminal Investigation (IRS-CI), between $2.7 billion and $3.0 billion of the stolen funds were frozen. Blockchain analytics firm TRM Labs attributed the attack to the North Korean hacking group TraderTraitor, which targeted assets across ten chains including Ethereum, Bitcoin (BTC), and Tron.
According to crypto.news, Binance initially restored Bitcoin withdrawals before expanding access on November 1 to Tether (USDT), USD Coin (USDC), and Ether (ETH) on Ethereum, as well as USDT, USDC, and BNB on BNB Smart Chain. The exchange reported that major balances including BTC, ETH, and stablecoins are fully backed, with the remaining 5% of affected assets mostly consisting of less-liquid tokens undergoing replacement.
Key facts
- 95% of customer losses covered
- Withdrawals resumed in phases
- $6.3B drained on Oct 29
- $2.7B-$3.0B frozen by partners
Read the original at BeInCrypto