Binance Restores Crypto Withdrawals Across Major Networks Following $6.3 Billion Security Breach
Binance has begun a phased reopening of crypto withdrawals following the historic $6.3 billion hot wallet security breach.
Binance Restores Crypto Withdrawals Across Major Networks Following $6.3 Billion Security Breach
Binance has begun a phased reopening of crypto withdrawals following the historic $6.3 billion hot wallet security breach.
Phased Restoration of Crypto Withdrawals Begins
Binance has officially reopened crypto withdrawals across 15 networks on November 1, 2026, marking the start of a phased recovery following a massive security breach. The phased rollout initially prioritized Bitcoin between 06:00 and 09:00 UTC based on recent user demand metrics.
Later in the day, the exchange expanded access to reopen withdrawals for USDC, USDT, and ETH on Ethereum, alongside USDC, USDT, and BNB on BNB Smart Chain. Binance has cautioned customers to anticipate temporary processing delays as transaction volume remains high during the initial reopening phase.
Absorbing the Impact of the Historic Hack
The security incident occurred between October 29 and October 30, draining approximately $6.3 billion from internet-connected hot wallets across roughly 10 blockchain networks. This makes the attack the largest digital asset theft in history. Stablecoins accounted for roughly $3 billion of the stolen funds, while native assets on Bitcoin, Ethereum, and Solana suffered major hits.
Throughout the disruption, deposit capabilities remained fully operational. To ensure customer funds were protected, Binance halted withdrawals on October 29 at 20:05 UTC to perform security audits and replenish user accounts using internal reserves, including its Secure Asset Fund for Users. The exchange allocated over $6.34 billion in corporate funds to cover user balances, achieving approximately 90% to 95% replenishment of affected assets by November 1.
Asset Recovery Efforts and On-Chain Movements
Parallel recovery efforts involving Binance and industry partners have successfully frozen or located around $3 billion of the stolen assets. Major stablecoin issuers leveraged central freezing features on their tokens to halt illicit transfers, whereas native cryptocurrencies lack central mechanics for freezing transactions.
Attacking entities have already begun relocating native assets that remain un-freezable. Blockchain tracking service Whale Alert flagged a transfer of 485,270 SOL, valued at $46 million, to an unknown address. That transaction represents roughly half of the 970,500 SOL—originally valued at $96 million—linked to the breach. The FBI and blockchain analytics firms have attributed the security attack to TraderTraitor, a North Korea-linked state actor connected to the Lazarus Group.
Updated Proof of Reserves and Future Timeline
Binance released an updated Proof of Reserves indicating that listed holdings in major cryptocurrencies, including BTC, ETH, and USDC, are 100% backed. The exchange has also scheduled a comprehensive proof-of-reserves assessment for November 2, 2026, to provide further operational transparency.
Subsequent stages of the withdrawal rollout remain unscheduled, as additional network reopenings depend entirely on ongoing security assessments and system demand. Binance is currently preparing a detailed post-incident report outlining the full scope of the breach and the internal response efforts.
About The Author
