Key Points

• Binance has recovered 90% of the assets stolen in the hacker attack.
• Reserves for Bitcoin, Ethereum, and XRP have been restored to 100% coverage.
• Withdrawals are expected to resume on November 1st (Sunday).

Binance stated that approximately 90% of the cryptocurrencies stolen in its record-breaking $6.3 billion security breach incident has been replenished. As the exchange prepares to resume customer withdrawals, this is regarded as an important milestone in recovery.

According to Binance's announcement on October 31st, the exchange has now fully replenished the affected reserves for 10 major cryptocurrencies, including Bitcoin, Ethereum, BNB, Solana, and XRP. Previously, in an update on October 30th, Binance stated that the coverage rate was about 80%.

Binance insists that customers will not incur financial losses, however, the recovery process is not yet complete, and the withdrawal service has also not been restored yet.

Binance has restored reserves of 10 major cryptocurrencies

The exchange confirmed that BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC currently all have reserve support, covering 100% of customer balances.

The remaining 10% is composed of smaller cryptocurrencies with weaker liquidity, and Binance is still continuing to replenish this portion.

Based on the disclosed theft amount of $6.3 billion, this proportion corresponds to approximately $630 million in affected assets. However, the exact amount still depends on the token price and the exchange's accounting methods.

Binance stated that it is purchasing alternative assets through cryptocurrency exchanges and over-the-counter markets, and is receiving assistance from industry partners.

The exchange previously disclosed that it had reserved over $6.34 billion to cover this incident, of which approximately $5 billion was already held in the form of the affected cryptocurrencies.

Its earlier security investigation identified a compromised employee laptop as a possible entry point for the intrusion, but investigators later discovered other signs of vulnerabilities.

Blockchain intelligence companies attribute this attack to hackers associated with TraderTraitor, which is linked to North Korea, but the investigation is still ongoing.

Binance utilizes SAFU, insurance funds, and company funds

Binance is financing this replenishment through three sources of funds: the company's treasury, a portion of the futures insurance fund, and a portion of the activated user safety asset fund ( SAFU ).

The company stated that the deployment of SAFU will be completed within the next 24 hours, and pledged to restore this emergency fund to approximately one billion US dollars.

Binance also stated that it will still retain sufficient funds in its futures insurance fund to meet regulatory requirements.

It is important to distinguish between the amount of stolen assets and the amount of stolen assets that are recovered.

Binance stated that through cooperation with stablecoin issuers and other blockchain companies, approximately $3 billion in cryptocurrencies related to the attackers have been frozen.

However, the frozen assets are not necessarily returned to the exchange, and making up for the loss means purchasing substitute tokens, rather than getting back the initially stolen funds.

Coinpaper Previous reports indicated that this attack initially started from XRP. Hackers first transferred approximately $296 million from 5 wallets, then shifted their targets to Bitcoin and Ethereum.

Another survey shows that Ripple has frozen RLUSD, reflecting the role of stablecoin issuers in curbing cryptocurrency theft.

Binance aims to resume withdrawals on November 1st, while the reserve audit is still ongoing.

Binance also released a new reserve certificate snapshot, taken at 00:00 Coordinated Universal Time on October 31st.

This snapshot reflects the updated customer asset coverage, but a complete zero-knowledge proof will still take 40 to 50 hours to generate.

Binance expects this process to be completed by November 3rd, by which time customers will be able to verify that their balances have been included in the reserves declared by the exchange.

Meanwhile, as additional infrastructure and security checks continue, the withdrawal service remains temporarily suspended.

The company stated that if the relevant inspections are successfully completed, withdrawal services are expected to be resumed on November 1st (Sunday).

This incident has already affected the cryptocurrency market, with BNB falling below $700, and Bitcoin also briefly losing its support at the $77,000 level.

Coinpaper Reports related to Bitcoin also mentioned that after this vulnerability incident, there was a liquidation of approximately $1.53 billion in the cryptocurrency market.