EL7.AI
CryptoMedium•1 November 2026•
4 min read

Binance Covers 95% of $6.3 Billion Hack Losses and Gradually Resumes Withdrawals

Key Facts

1Binance had covered about 95% of the amount affected in its November 1 update, compared with 90% on October 31, leaving 5% uncovered.
2Binance estimated the hack's total impact at about $6.3 billion and said about $3 billion had been frozen on-chain.
3Binance set the start of the first phase of the withdrawal resumption for November 1, between 06:00 and 09:00 UTC.
4Binance said it had allocated more than $6.34 billion in company funds, and coverage had risen from 80% to 90% in its October 31 update.

Binance said in an update on November 1 that it had covered about 95% of the amount affected by the hack, up from 90% in its October 31 update, and announced that withdrawals would resume in stages. The exchange set the first phase to begin between 06:00 and 09:00 UTC on November 1, with services to return gradually after readiness and security checks. This meant withdrawals began to resume while a portion of the assets remained uncovered, contrary to the initial version, which said the lost amounts had been fully secured. Binance described the remaining 5% as tokens outside the 10 largest assets listed in its update. It said those assets were less liquid and that it continued to buy them through markets and over-the-counter trading channels.

The rise from 90% to 95% marked further progress in covering the affected assets in one day, after the figure had reached 80% before the October 31 update. Binance said in that update that it had allocated more than $6.34 billion in company funds to cover the losses, and that the amount covered had risen from about 80% to 90%. This sequence places the latest update within a phased compensation process, with specific tokens still outside coverage when the exchange announced the resumption of withdrawals. The exchange said asset coverage drew on a portion of the Secure Asset Fund for Users, a portion of the futures insurance fund, and the company treasury. It said it would bear the financial impact of the losses rather than pass it on to users.

Binance said part of the Secure Asset Fund for Users had been used to restore assets and that it was committed to replenishing the fund to about $1 billion. According to its updates, the funding for coverage combined resources from the fund, the futures insurance fund and company funds. The exchange continued to buy assets that remained uncovered through markets and over-the-counter trading channels. Binance tied the resumption of withdrawals to readiness and security checks and said services would be made available gradually. The update did not specify when purchases of the remaining tokens would end or when all services would be fully restored.

Binance estimates the incident's total impact at about $6.3 billion and said it had worked with blockchain industry partners to freeze about $3 billion worth of affected assets on-chain, according to its October 30 update. The company said withdrawals were suspended as a precaution to conduct security checks, while deposits remained open and were unaffected by the incident. It also said its initial investigation indicated that an engineer's laptop in the development operations team may have been used to access a service container and send unauthorized withdrawal transactions. Binance added that it had found no evidence that wallet private keys had been leaked. These details come as the exchange begins restoring withdrawals while the investigation is still ongoing.

The Federal Bureau of Investigation said the attack was linked to malicious cyber activity by a group known as TraderTraitor, the same group the bureau attributed with the $1.5 billion hack of Bybit in 2025. The bureau urged cryptocurrency platforms, blockchain analytics firms and others to block transactions linked to specified addresses in an effort to prevent money laundering. It added that investigators expected attempts to convert the stolen assets through decentralized finance and instant-swap services. At the market level, the Associated Press said bitcoin fell 3.2% on the evening of Thursday, October 29, to below $79,000 following the incident. The market move provides context for Binance's announcement on coverage and the resumption of withdrawals, without by itself determining the step's effect on prices.

Binance said it would monitor network and platform performance as services returned in stages, and would add other networks and assets to withdrawals when they were ready. The first-phase list included BTC, ETH, BNB, TRX, SOL, XRP, ZEC and DOGE, with withdrawals to be made available gradually across listed assets and networks. The company set the start window for this phase on November 1, between 06:00 and 09:00 UTC, after readiness and security checks. The updates gave no deadline for completing the restoration of withdrawals for all assets or covering the remaining share. Binance said it would publish a more detailed incident report after the investigation was complete.