Crypto · $BNB/USD
Binance Reopens Bitcoin and Ether Withdrawals After Covering 95% of $6.3 Billion Hack
Image: MichaelWuensch via Pixabay
The exchange began a phased restart on Sunday as the FBI attributed the theft to North Korea's TraderTraitor unit.
By Emmanuel Cruz ·
Binance began restoring customer withdrawals on Sunday, reopening bitcoin, ether and several other major tokens in the first phase of a staged restart, after saying it had replaced about 95% of the roughly $6.3 billion in assets stolen from the exchange late Thursday [1][2]. The move is the first concrete step toward normal operations at the world's largest crypto exchange since the record theft froze customer funds and pushed major cryptocurrencies sharply lower on Friday [3].
Bitcoin withdrawals resumed shortly after 0600 GMT on Sunday, according to Reuters, with the first phase covering 15 assets including bitcoin, ether, XRP and dogecoin [1]. CoinDesk reported that phase one opened a withdrawal window from 06:00 to 09:00 UTC and included the stablecoins USDT and USDC as well as BNB, with priority given to the most requested networks [2]. Binance said in a post on X that the "first batch network now opened in phase one of withdrawals," and that other assets and networks would follow as security checks are completed [3].
The exchange said it had covered 95% of the affected assets, up from 90% a day earlier, mostly by buying replacement tokens with company money [1][2]. Reuters reported that Binance set aside roughly $6.34 billion to cover losses, drawing on its $1 billion Secure Asset Fund for Users, its futures insurance fund and its corporate treasury [1]. Co-chief executive Yi He said half of the user protection fund would be used and that it would be replenished to about $1 billion [1]. The remaining 5% consists of less liquid tokens outside the largest ten, which the company said it is sourcing through market and over-the-counter channels [2]. Binance has said customers will not bear the losses [2].
Responsibility for the attack has also come into sharper focus. The FBI said on Saturday that North Korea was behind the theft and identified the state-sponsored group known as TraderTraitor, the same unit blamed for the $1.5 billion theft from the Bybit exchange in February 2025 [3]. The bureau said it had seen the group converting stolen assets into ether and expected further laundering through decentralized finance and instant swap services, and it urged private-sector firms to block transactions tied to the group's addresses [3]. President Donald Trump said on Saturday that the US was not certain North Korea was involved [1].
According to Reuters, most of the theft took place within about 20 minutes starting late Thursday, and about $3 billion of the affected assets had been frozen as of Friday [1]. CoinDesk, citing blockchain analytics firm TRM Labs, said the haul included 18,270 bitcoin and 200,630 ether, along with large amounts of USDT, USDC, XRP and SOL [2]. Most of the frozen funds are stablecoins, which their issuers can block, while bitcoin and ether cannot be frozen in the same way [2].
Co-chief executive Richard Teng described the breach as a "complex attack" involving a compromised laptop and malicious software designed to erase evidence of the activity [1]. Binance has promised a full proof-of-reserves report [2].
Bitcoin was quoted near $77,900 and BNB near $713 in CoinDesk's market data around 7 a.m. ET on Sunday [2].
The next tests for the market are how smoothly the remaining phases of the withdrawal restart proceed, whether customers move large amounts of assets off the exchange once they can, the publication of Binance's reserve report, and whether investigators can trace and freeze more of the bitcoin and ether that remain outside the reach of issuers.
Sources:
[1] Reuters via Investing.com, "Binance resumes bitcoin, ether withdrawals after covering bulk of stolen $6.3 billion", November 1, 2026. https://investing.com/news/stock-market-news/binance-to-resume-withdrawals-after-recovering-bulk-of-6-billion-in-stolen-funds-4989388
[2] CoinDesk, "Binance opens crypto withdrawals in phases starting with bitcoin following $6.3 billion hack", November 1, 2026. https://www.coindesk.com/markets/2026/11/01/binance-opens-crypto-withdrawals-in-phases-starting-with-bitcoin-following-usd6-3-billion-hack
[3] CBS News, "Binance resumes withdrawals for some major cryptocurrencies after $6 billion heist", November 1, 2026. https://www.cbsnews.com/news/binance-crypto-heist-withdrawals/
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.