Binance outlines withdrawal restart and loss coverage after security breach
Binance says deposits are operating while withdrawals remain paused, and plans a phased restart after security checks. It has also described how it intends to cover losses.
After the October 29 security breach, Binance says deposits and other unaffected services are operating while withdrawals remain suspended. In its October 30 update, the exchange said it aimed to begin restoring withdrawals in phases within approximately 34 hours, subject to security checks. Withdrawals had not resumed when that target was announced.
When withdrawals may resume
Binance says its team is reviewing affected systems and working to restore the withdrawal service safely. The company has not provided a guaranteed reopening time or a schedule for individual assets and regions. Users should check the current status on official Binance channels before making plans. Binance co-CEO Richard Teng said in a video transcript posted on October 30 at 10:33 p.m. Hong Kong time that the team was rebuilding the withdrawal service: “We are not switching it back on until it passes rigorous testing.” He said the review covered employee devices, cloud systems, key management and transaction signing.
How Binance says it will cover losses
Binance estimates that roughly $6.3 billion in token assets was stolen. It says it has set aside more than $6.34 billion in company funds, including $5 billion held in the same types of tokens affected, and intends to cover losses through its SAFU fund and corporate treasury. These are company statements; we have not independently verified the funds or a final loss figure.
Separately, Binance says about $3 billion has been frozen on-chain with partners’ help. Frozen assets are not the same as recovered funds, and the frozen amount should not be added to the company funds as a confirmed recovery total.
What the investigation has found
Binance initially suggested that an attacker may have compromised an engineer’s laptop. The company now says it has found additional points of breach and no evidence so far of wallet private keys leaking. The full attack sequence is still under investigation, so that finding could change. In the same transcript, Teng said the attacker used an EIP-7702 delegation to obtain on-chain execution approval and that this delegation bypassed Binance’s normal approval controls. He also said a self-destruct mechanism erased tools and traces, complicating the investigation. We have not independently verified his account.
What happens next
Binance plans an initial proof-of-reserves snapshot and says the result should be ready by November 2. It also plans a detailed technical report after the investigation. A snapshot covers a single point in time, and neither the report nor the withdrawal restart has happened yet.
Sources
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