Binance announced it has covered $6 billion, representing 95% of the $6.34 billion in funds lost in a hack that occurred on October 29th. The exchange resumed withdrawals on November 1st after pausing them to strengthen security.
How Binance Covered the Losses
The exchange mobilized funds from three sources within three days to compensate users. It withdrew $581 million in Bitcoin (7,499 BTC) from the Secure Asset Fund for Users (SAFU), an emergency reserve designed for such situations. Binance committed to replenishing SAFU back to $1 billion.
Additionally, Binance drew approximately $425 million from its Futures Insurance Fund, which normally covers liquidation risks in its derivatives trading segment. The exchange also used corporate balance sheet funds, though it did not specify whether the remaining $4.7 billion shortfall came from this source.
The coverage includes major assets: Bitcoin, Ethereum, USDT, BNB, Solana, USDC, XRP, USD1, RLUSD, and ZEC. According to the exchange's proof-of-reserves, major assets are now 100% fully backed, with 5% of stolen assets remaining to reach complete coverage. Binance stated it will use over-the-counter channels to purchase remaining assets for full backing.
Withdrawal Resumption and Network Rollout
Binance resumed phased withdrawals beginning November 1st between 6:00 UTC and 9:00 UTC across 15 networks. Initial support covers Bitcoin, Ethereum, major stablecoins (USDT, USDC), ZEC, and XRP, with additional networks coming later as stability improves.
The exchange cautioned that users may experience temporary delays or longer processing times due to traffic volume and advised retrying failed withdrawal attempts after a brief interval.
Frozen Funds and Law Enforcement
The U.S. Federal Bureau of Investigation attributed the hack to North Korea's state-backed TraiderTraitor and warned DeFi protocols, including THORChain operators, to block the stolen funds from being laundered through their systems.
Binance partners have frozen $3 billion in additional funds, which will proceed through separate legal channels for recovery and are distinct from the $6 billion in covered losses.
