Overview of the Incident

Binance, the leading global cryptocurrency exchange, announced the resumption of withdrawals after suffering a substantial theft estimated at $6.3 billion from its digital wallets last week.

Phased Resumption of Withdrawals

In a statement posted on X, Binance co-CEO Richard Teng emphasized, “Today, we’re beginning the phased resumption of withdrawals, taking a careful approach to ensure services return safely and securely.” He further reassured users that Binance would bear the financial loss from the incident rather than shifting the burden onto its customers.

Details on Withdrawal Availability

As of 7:36 a.m. ET, withdrawals for 15 cryptocurrencies—including Bitcoin, Solana, and Ethereum—have been restored. Binance plans to gradually reintroduce more assets and networks as security assessments are completed. The prioritization of this process will be guided by user demand over the previous week.

Withdrawal and Deposit Statistics

By 10:30 a.m. ET, the platform had processed approximately $4.6 billion in withdrawals and $1 billion in deposits. Ongoing testing of the remaining systems and assets is currently underway to ensure their integrity.

Proactive User Communication

Binance acknowledged potential delays in withdrawal processing times, emphasizing that the decision to suspend withdrawals was made with users’ access to funds in mind. “We did not take this decision lightly. We understand how important reliable access to withdrawals is for our users,” the company communicated via X.

Coverage of Stolen Funds

The exchange reported that approximately 95% of the stolen amount would be covered as it commits to fully absorbing the financial hit from the theft. This is supported by its Secure Assets Fund for Users, estimated at around $1 billion in Bitcoin, alongside its corporate reserves and Futures insurance fund.

The 5% not covered consists of tokens that are less liquid and harder to source quickly compared to top cryptocurrencies like Bitcoin and Solana, which are fully backed.

Investigation and Recovery Efforts

The Federal Bureau of Investigation (FBI) identified TraderTraitor, a group of cybercriminals linked to North Korea, as the perpetrators behind the theft. The FBI reported that the culprits are converting a significant portion of the stolen assets, primarily into Ethereum.

In a show of gratitude, Binance thanked the FBI for their support during this crisis, stating, “We sincerely thank (the FBI) for their strong support during this challenging time.”

Maintaining User Trust

In light of the breach, Binance has conducted thorough security reviews and collaborated with law enforcement and industry experts to recover compromised funds. They expressed empathy towards users, stating, “We recognize how difficult this period has been for our users and the broader Binance community. Thank you for your patience, understanding, and continued trust as our teams worked through this incident with the seriousness it required.”

Additionally, Binance acknowledged the assistance of cryptocurrency firms that helped freeze and trace approximately $3 billion worth of the stolen assets.