Binance Hack: 95% of Losses Covered as Withdrawals Resume
Binance says it has covered more than 95% of the $6.34 billion in assets lost in a hack, with users’ major assets now fully backed. It used $581 million from its Secure Asset Fund for Users (SAFU), about $425 million from its Futures Insurance Fund, and funds from its corporate balance sheet. Binance says it will absorb the losses and plans to replenish SAFU to $1 billion. It did not specify how the remaining coverage will be funded.
The exchange began phased withdrawals on 1 November 2026, initially supporting assets including BTC, ETH, USDT, USDC, ZEC and XRP across 15 networks. Binance warned that high traffic could cause delays; support for other networks will follow once operations are stable. It said it would use over-the-counter purchases to fully back the remaining assets.
The FBI attributed the hack to North Korea-linked TraderTraitor and warned DeFi services involved in laundering the stolen funds to block them. Binance said funds frozen by its partners—reported separately at $3 billion—are not included in the amount it has covered and will be handled through separate legal channels.
Neutral
The news has offsetting implications for crypto markets. Binance’s claim that it has covered more than 95% of losses, its commitment to absorb the financial impact, and the phased reopening of withdrawals may ease immediate fears of customer losses or a prolonged liquidity crunch. These developments could reduce pressure on Binance-linked trading activity and limit spillover into major tokens.
However, the hack remains a significant security and counterparty-risk event. Withdrawals are being restored in stages, delays are possible, and the funding of the remaining coverage has not been fully detailed. The separate $3 billion in frozen funds also depends on legal processes, so it should not be treated as already recovered. Such uncertainty can keep volatility and risk premiums elevated, particularly for assets and protocols connected to the incident.
In the short term, traders may watch withdrawal processing, Binance reserve disclosures, and any movement in exchange flows or stablecoin liquidity for signs of stress. A smooth rollout could support confidence; renewed delays or new revelations could prompt selling and wider volatility. Over the longer term, full reimbursement and transparent proof of reserves would help restore confidence, while regulatory or security fallout could weigh on exchange and DeFi sentiment. On balance, the recovery measures are reassuring, but the unresolved risks make a neutral market assessment more appropriate than a clearly bullish or bearish one.