Binance, one of the world’s largest cryptocurrency exchanges, has announced the commencement of a second phase of cryptocurrency withdrawals starting at 04:00 UTC on Tuesday. This move comes after the platform faced a significant security breach, leading to a $6.3 billion hack last week. The exchange confirmed that more assets would be made available as security checks are finalized.
The initial phase of withdrawals opened on November 1, during which Binance processed a staggering $4.649 billion in withdrawals across 15 different networks, surpassing the $1.01 billion in deposits made. Following this, net outflows have shown a marked reduction, dropping to $2.57 billion on Monday from $6.1 billion just a day earlier, according to data from DefiLlama.
As Binance continues to roll out the second phase of withdrawals, the exchange is prioritizing tokens based on user demand observed over the past week. This phase includes popular networks such as Binance Smart Chain, Ethereum, Solana, XRP Ledger, Sui, Arbitrum, Optimism, Tron, and Base, while deposits remain open for users.
Scam Warnings Issued
In light of the phased reopening of withdrawals, Binance has issued a stern warning to its users about potential scams. In an alert released on X, the platform cautioned that fraudsters may take advantage of the situation by impersonating Binance and offering to expedite withdrawals or facilitate compensation claims for a fee. The exchange emphasized that it will never charge for prioritizing withdrawal processes or unlocking assets.
Scammers may target users through direct messages, emails, and group chats, often using small transfers accompanied by messages to gain trust. Binance has reassured users that it will never ask for sensitive information such as passwords, two-factor authentication codes, or private keys. They also warned against requests to connect wallets or approve transactions that could allow third parties to access user assets.
Additionally, the Federal Trade Commission has alerted the public to refund and recovery scams where impersonators request upfront payments or sensitive financial information, underscoring the importance of vigilance among Binance users.
For those with pending withdrawals, Binance recommends checking account status via the app. Users concerned about security are advised to change their passwords and review their account settings, with in-app support available for assistance.
In a bid to rebuild trust, Binance has also released a cryptographic proof of reserves, confirming that balances for BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC are backed at least 1:1. Users can verify this independently by downloading an open-source verifier from the official Binance website.
As of November 1, asset replenishment efforts have reached approximately 95%, with only the least liquid tokens remaining to be addressed. Binance has committed to covering the financial impact of the stolen funds, ensuring that users are not left to bear the burden of the loss. A more comprehensive reserves snapshot is expected on November 4, which will take 40 to 50 hours to finalize.
