Binance Says Withdrawals May Resume Within 40 Hours
Binance co-CEO Richard Teng says withdrawals could resume within about 40 hours, after the exchange completes security checks following a hot-wallet breach. The attacker used EIP-7702 to obtain on-chain execution authority that bypassed normal approval controls, then used a self-destruct mechanism to destroy tools and traces. Binance says the incident involved company funds, not customer assets, most of which are held in cold wallets. The exchange has earmarked more than $6.34 billion to cover the loss; about $5 billion in matching tokens is already available, with the remainder being replenished through markets and OTC deals. Binance is also reviewing its security systems and coordinating with law enforcement and industry partners to trace and recover funds. It aims to publish an initial Proof of Reserves (PoR) verification on Monday. Traders will watch the withdrawal reopening and PoR release for signs of restored confidence.
Neutral
The breach and temporary withdrawal suspension are negative signals for exchange security and could prompt short-term caution, withdrawals, or reduced trading activity on Binance. However, the article says the affected funds belong to the company, most customer assets are in cold wallets, and Binance has committed more than $6.34 billion to cover the loss. These factors reduce the immediate risk of customer losses or broader forced selling. The market impact is therefore likely to depend on whether withdrawals resume on schedule and whether the planned Proof of Reserves verification supports the exchange’s claims. Similar exchange incidents have often triggered short-lived volatility and confidence concerns, with longer-term effects shaped by transparency, recovery efforts, and the security review. A delay, evidence of customer-fund exposure, or a weaker-than-expected PoR could turn sentiment bearish; a timely reopening and credible verification could help stabilize confidence. On the information provided, the likely impact on the wider crypto market is limited and mixed, supporting a neutral view.