Binance Covers 90% of Losses After $6.3 Billion Crypto Hack

Binance, the world’s largest Cryptocurrency exchange, said it has covered approximately 90% of the losses linked to a cyberattack that reportedly resulted in the theft of $6.3 billion in digital assets. The company said it is using its emergency reserves, insurance funds and corporate treasury to restore the affected customer holdings, while maintaining that users will not face any financial losses.

The latest update marks progress in Binance’s recovery efforts following one of the largest reported cryptocurrency thefts. The exchange had previously announced that it had replaced around 80% of the affected assets using company reserves. It now says the replacement process is approaching completion, with the remaining assets expected to be covered through continued purchases.

The development comes a day after Binance disclosed that hackers had moved more than $6 billion through wallets connected to the security breach. The incident has drawn attention from cryptocurrency exchanges, regulators and law enforcement agencies as investigators attempt to trace the stolen funds.

Binance has stressed that the attack did not compromise individual customer accounts and that it will absorb the financial impact of the stolen funds. The exchange also announced a new Proof of Reserves snapshot to demonstrate that customer assets remain fully backed.

Binance Says Major Customer Assets Are Fully Backed

In its latest statement, Binance said the holdings of several major cryptocurrencies and stablecoins are now 100% backed. The list includes Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USD Coin (USDC), XRP, USD1, RLUSD and Zcash (ZEC).

The exchange said it would continue purchasing the remaining affected assets until the stolen holdings were fully replaced. It reiterated that customers would not be required to absorb losses resulting from the incident.

“Binance will absorb the financial impact of these stolen funds, not our users,” the company said in its update.

Binance co-CEO Richard Teng also sought to reassure customers through a video statement, saying the hackers had targeted the company’s corporate holdings rather than individual customer accounts.

“Your assets are safe,” Teng said while explaining the exchange’s recovery strategy.

However, the scale of the reported theft has raised questions about the security of cryptocurrency platforms, the movement of stolen digital assets and the ability of exchanges to coordinate recovery efforts across the industry.

Binance Outlines Recovery Plan After Historic Crypto Hack

Binance said it is relying on three main sources to replenish the affected customer holdings: its Secure Asset Fund for Users (SAFU), a portion of its Futures insurance fund and its corporate treasury.

SAFU reserves to support asset replacement

The Secure Asset Fund for Users is Binance’s emergency protection mechanism, designed to provide an additional financial safeguard for customers in certain circumstances. The exchange said it would continue deploying SAFU funds over the following 24 hours as part of its effort to replace the affected assets.

Binance has also used funds from its corporate treasury to cover a significant portion of the losses. The company said its financial resources would be used to ensure that customers do not bear the cost of the security breach.

Futures insurance fund also being used

Another part of the recovery plan involves Binance’s Futures insurance fund. The exchange said it had allocated a portion of this fund to support the replacement process but would continue maintaining the minimum balance required by regulators.

This requirement means Binance cannot use the entire insurance fund for recovery. The exchange must balance its immediate response to the cyberattack with its regulatory and operational obligations.

The combination of emergency reserves, insurance resources and corporate funds is intended to restore the backing of affected customer assets without requiring users to take financial losses.

New Proof of Reserves Snapshot to Verify Customer Holdings

Binance announced a fresh Proof of Reserves (PoR) snapshot dated October 31, 2026, as part of its efforts to demonstrate that customer assets remain backed.

Proof of Reserves is a verification mechanism used by cryptocurrency exchanges to show that they hold sufficient assets to cover customer balances. It is intended to provide users with greater transparency about an exchange’s ability to meet its obligations.

Binance said customers would be able to verify that their holdings remain backed at least 1:1 once the complete zero-knowledge proof has been generated. The company expects this process to be completed by November 3.

Zero-knowledge proof technology allows information to be verified without necessarily revealing all the underlying data. In the context of Proof of Reserves, it can help demonstrate that customer balances are included in the exchange’s reserve calculations while protecting sensitive information.

The latest snapshot is particularly significant because it follows a major security incident that has raised concerns about the exchange’s asset management and financial safeguards. However, Proof of Reserves is not a complete substitute for an independent assessment of an exchange’s overall financial condition, liabilities and security controls.

Binance Targets November 1 for Withdrawal Resumption

Alongside its asset replacement efforts, Binance said it remained on schedule to resume withdrawals on Sunday, November 1, 2026. The reopening of withdrawal services is subject to final operational checks.

The ability to withdraw funds is an important step in restoring normal exchange operations following a major security incident. Customers generally rely on uninterrupted access to deposits, trading and withdrawals, making any disruption a significant concern.

Binance’s announcement suggests that the exchange is working to restore services while completing the process of replacing affected holdings. The company has not indicated that customers will be required to pay additional charges or accept reductions in their balances as a result of the breach.

Nevertheless, the resumption of withdrawals will depend on the completion of the exchange’s operational and security checks. Customers may continue to monitor official Binance announcements for confirmation of service availability.

Authorities Investigate as Crypto Markets React

The cyberattack has attracted the attention of law enforcement agencies as investigators attempt to identify the hackers, trace the stolen cryptocurrency and determine whether the funds can be recovered.

According to reports, approximately $3 billion of the stolen assets had potentially been identified and frozen across multiple cryptocurrency exchanges. However, identifying or freezing digital assets does not automatically mean they can be returned to their original owners. Their recovery may depend on cooperation between exchanges, investigators and relevant authorities, as well as the circumstances surrounding each transaction.

The US Secret Service said it was working with Binance and private-sector partners to trace the stolen funds and support efforts to recover them. The investigation involves following cryptocurrency transactions across digital wallets and identifying accounts or services that may have received assets connected to the breach.

Binance’s cooperation with investigators could be important because stolen cryptocurrency can move across multiple wallets and platforms. Exchanges and other service providers may be able to identify suspicious transactions and restrict access to funds where legally permitted.

Trump administration monitoring the incident

US officials have also taken an interest in the incident. President Donald Trump said his administration was monitoring the cyberattack and welcomed Binance’s commitment to reimburse the affected losses.

The involvement of US authorities reflects the wider implications of large-scale cryptocurrency thefts, particularly when stolen funds move across international platforms and jurisdictions.

Investigators have yet to establish publicly whether all the stolen assets can be recovered. The reported identification of around $3 billion in funds represents a potential development in the investigation, but the final outcome remains uncertain.

What the Binance Hack Means for Cryptocurrency Users

The incident highlights the risks faced by cryptocurrency exchanges even when customer accounts are not directly compromised. A security breach involving corporate holdings can still create uncertainty about an exchange’s reserves, operational stability and ability to meet customer obligations.

Binance’s decision to use its emergency fund, insurance resources and corporate treasury to replace the affected assets is intended to limit the financial consequences for customers. Its latest Proof of Reserves announcement is also aimed at providing additional transparency during the recovery process.

For cryptocurrency users, the episode underlines the importance of understanding how exchanges protect customer funds, disclose their reserves and respond to security incidents. Proof of Reserves can provide useful information, but users should also consider an exchange’s liabilities, security practices, withdrawal policies and regulatory position.

For Binance, the immediate priorities are completing the replacement of the remaining affected holdings, publishing the promised verification data, restoring withdrawal services and supporting the ongoing investigation.

Although the exchange says it has covered 90% of the losses, the recovery process is not yet complete. The remaining replacement purchases and the investigation into the stolen funds will determine how quickly Binance can move beyond the incident and restore confidence among customers and the wider cryptocurrency industry.