Binance says it has fully covered the assets affected by its recent $6.34 billion security breach using its own financial resources. The crypto exchange also published an expanded Proof of Reserves snapshot after replacing assets lost in the incident, saying it had reserved more than 100% of the funds required to cover the losses.
The breach occurred on October 29 and affected approximately $6.34 billion in cryptocurrency assets. Binance temporarily suspended withdrawals while investigating unauthorized transactions involving its wallet infrastructure. The company committed to absorbing the financial losses rather than passing them to customers.
Recovery Progress and Asset Replacement
Binance allocated more than $6.34 billion from its own resources to support the recovery. Those resources included its corporate treasury, the Secure Asset Fund for Users, and part of its futures insurance fund. The exchange used the funds to purchase replacement cryptocurrencies while investigating the incident.
By October 31, Binance had replenished approximately 90% of affected assets. Coverage increased to 95% on November 1 and reached 98% by November 4, according to the exchange. Binance said the remaining 2% consisted of less-liquid tokens requiring purchases through market and over-the-counter channels.
Binance began reopening withdrawals on November 1, gradually restoring access across supported cryptocurrencies and blockchain networks. The recovery followed large customer withdrawals after the security breach. Binance also reported that approximately $2.85 billion in affected assets had been frozen or intercepted during its investigation.
The company said it has continued working with law enforcement and blockchain partners to trace the stolen funds. Its investigation identified compromised employee systems as part of the attack. Binance subsequently strengthened wallet security, revoked affected credentials, and announced plans for further cybersecurity reviews.
Expanded Proof of Reserves Snapshot
Binance published its updated Proof of Reserves snapshot using balances recorded on November 4 at 00:00 UTC. The assessment covers 44 cryptocurrencies, compared with 10 assets in its previous snapshot. The earlier assessment included Bitcoin, Ethereum, BNB, XRP, Solana, USDT, USDC, USD1, RLUSD, and Zcash. Binance confirmed that those ten assets had received full reserve backing following the initial replenishment process.
On November 2, the exchange completed the zero-knowledge proof for its October 31 snapshot. This allowed customers holding the ten supported assets to independently verify minimum reserve backing of 1:1. The expanded assessment uses Merkle trees and zk-SNARK cryptography to verify customer balances without revealing individual holdings.
Binance said users can access their verification records through its website and use an open-source verification tool. The company initially estimated that generating the November 4 proof would require approximately 50 to 60 hours. Its public announcement did not confirm completion of that expanded proof, which remains separate from the publication of the snapshot.
Binance continues restoring withdrawal services across additional networks, following the reopening of HYPE and APT withdrawals. The exchange has committed to further updates on asset replenishment and cybersecurity measures.
