Binance says 90% of hack losses are covered
Binance says it has raised coverage for funds stolen in its recent security breach to 90%, from about 80% in its previous update. The exchange says users will not bear the financial loss and that it is still buying affected assets through market and over-the-counter channels.
Binance plans to use its SAFU emergency reserve, Futures insurance fund and corporate treasury to cover the shortfall. It expects to deploy part of SAFU within 24 hours and says it will restore the fund to around $1 billion. Ten major assets—including BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC—are reported to be fully backed.
The exchange expects withdrawals to resume on November 1. A new Proof of Reserves snapshot is being prepared, with a zero-knowledge proof expected by November 3. For traders, the recovery effort and withdrawal restart may ease concerns about Binance liquidity, but the hack and remaining uncovered losses still pose risks to confidence and short-term volatility.
Neutral
The news is broadly reassuring for Binance users, but its overall market impact is mixed. Binance says it will absorb the loss, has raised coverage to 90%, and expects withdrawals to resume on November 1. Those steps may reduce immediate fears of a liquidity squeeze or a rush to exit the exchange. Full backing for the 10 named assets and a forthcoming Proof of Reserves update could also help rebuild confidence.
However, 90% coverage means the recovery is not yet complete, and the breach itself highlights security and counterparty risks. The use of SAFU, the Futures insurance fund and corporate funds may reassure users, but traders will likely watch for confirmation that withdrawals reopen on schedule, that the remaining assets are acquired, and that the reserve proof supports Binance’s claims. In past exchange-security incidents, compensation and continued operations have sometimes limited wider market contagion, while uncertainty around withdrawals has triggered sharp, short-lived selling. In the short term, Binance-related tokens and assets held on the exchange could remain sensitive to updates and trading flows. Over the longer term, the incident may renew scrutiny of exchange security, reserve transparency and insurance arrangements. On the information available, the recovery measures offset some of the negative implications, so a neutral classification is most appropriate.