Binance has officially resumed Bitcoin withdrawals as of November 1, marking a significant step forward following a staggering $6.3 billion hack that forced the exchange to halt operations. Bitcoin is the first cryptocurrency to have its withdrawal service reinstated.
Binance founder Changpeng Zhao announced the reopening via a brief post on X, stating, “BTC withdrawal is live.” This pivotal moment comes after the exchange confirmed that it has successfully replaced approximately 95% of the stolen assets, a notable increase from the 80% reported previously and 90% noted just a day earlier.
To date, the first phase of withdrawals encompasses selected cryptocurrencies across 15 distinct networks, but Binance has emphasized that each route must pass rigorous security checks prior to being activated. This phased approach aims to ensure the safety and integrity of user funds as the platform recovers.
In a robust effort to cover the losses incurred from the breach, Binance has utilized a combination of corporate funds, resources from its Secure Asset Fund for Users (SAFU), and additional reserves from its futures insurance fund. The company has earmarked over $6.34 billion, including $5 billion in the affected cryptocurrencies, to facilitate the recovery process. Additionally, partners like Tether and Circle have frozen around $3 billion in stolen assets, further assisting in the recovery efforts.
Co-CEO Richard Teng stated that the financial implications of the hack will be absorbed by Binance itself, clarifying that users will not bear the brunt of these losses. The exchange has assured customers that balances in Bitcoin, Ether, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC are fully backed, with the remaining 5% comprising less liquid tokens that require more time to procure.
The hack, which targeted multiple hot wallets, took place on October 29 and has been linked to a North Korea-associated hacking group known as TraderTraitor. Investigators, including those from TRM Labs and Chainalysis, have identified several additional breach points, beyond what was initially suspected. Binance has committed to providing a comprehensive incident report once the investigation concludes.
In conjunction with the withdrawal resumption, Binance has released a new proof-of-reserves snapshot taken on October 31, with a full cryptographic proof expected by November 3. This transparent approach aims to bolster user confidence as the platform navigates this challenging period.
The initial phase of cryptocurrency withdrawals is set to operate within a designated timeframe from 06:00 to 09:00 UTC on Sundays. The list of supported cryptocurrencies includes Ethereum, BNB Smart Chain, Tron, Solana, XRP Ledger, Zcash, and Dogecoin, among others. However, Binance has cautioned that not every route will be available simultaneously, as engineers must finalize security measures for each asset and network pairing.
While a date for the second phase of withdrawals has yet to be announced, co-founder Yi He indicated that the remaining wallets are undergoing thorough security audits. The company is prioritizing other currencies based on market value, user holdings, and overall demand. Users are advised to check the withdrawal page frequently, as deposits remain open and updates will be communicated through official channels.
