Binance Covers 95% of $6.3B Hack Losses as Withdrawals Resume

Binance has replenished approximately 95% of the assets affected by its $6.3 billion security breach, up from 90% in its previous update. The exchange is continuing to purchase the remaining tokens through market and over-the-counter (OTC) channels while gradually restoring withdrawal services.

In its October 31 update, Binance said it had covered 90% of the impacted amount after allocating more than $6.34 billion to compensate for the losses. The exchange confirmed that Bitcoin (BTC), Ethereum (ETH), USDT, BNB, Solana (SOL), USDC, XRP, USD1, RLUSD, and Zcash (ZEC) were fully backed.

The exchange also said it would absorb the financial impact of the stolen funds rather than pass the losses on to users.

Binance Uses SAFU and Corporate Funds to Cover Losses

Binance replenished the affected assets through three sources: its Secure Asset Fund for Users (SAFU), a portion of its Futures insurance fund, and its corporate treasury.

The exchange also transferred 7,499 BTC from SAFU as part of the recovery process. Binance said the remaining balance in its Futures insurance fund would continue to meet its regulatory requirements.

The remaining uncovered assets initially accounted for 10% of the impacted amount. Binance described these tokens as less liquid than the major cryptocurrencies already backed, making them harder to acquire in the required quantities.

However, the exchange's November 1 update confirmed that coverage had increased further to approximately 95%. The outstanding 5% consists of assets outside the ten major tokens listed in its earlier announcement. Binance plans to continue acquiring them through market and OTC transactions. 

Binance Begins Restoring Withdrawals in Phases

Alongside the recovery effort, Binance has started restoring withdrawal services following the temporary suspension imposed after the security incident.

The exchange began its first withdrawal phase on November 1, covering selected assets and networks, including Bitcoin, Ethereum, BNB Chain, Solana, XRP Ledger, Tron, and others.

Binance said additional networks and assets would become available as they pass security and operational checks. Users may experience temporary delays during the initial restoration period as the exchange monitors network performance and withdrawal demand. 

The incident involved approximately $6.3 billion in cryptocurrency outflows across multiple blockchain networks. Altcoin Buzz previously examined the attack in Binance Hack: How Hackers Drained $6.3 Billion From the Crypto Exchange.

Binance's recovery progress is an important step toward restoring user access and confidence. However, the exchange still needs to replenish the remaining affected assets and complete its investigation into the security breach.