Binance reopens more withdrawals after $6.3B hack

Binance started another phase of withdrawal reopenings on November 5. Recovery Update #8 lists dozens of tokens across six blockchain networks, one week after hackers took about $6.3 billion from the exchange's hot wallets. In its official announcement, the world's largest crypto exchange said withdrawals for the listed assets would open from 04:00 UTC. They will roll out gradually as each asset passes security and readiness checks, and deposits remain open.binance.com

The new batch covers 69 network-asset pairs on Ethereum ↘ 0.49%, BNB Smart Chain, Base, Tron, Polygon and Sui. It includes Uniswap's UNI ↗ 1.66%, Aave, the gold-backed PAXG and Virtual Protocol's VIRTUAL, according to Binance's update. The exchange's announcements page lists a Recovery Update #9, dated November 6, for still more assets.binance.com+1

Cash withdrawals and replenished funds

Binance also said dollar cash withdrawals are available again, and that euro, yen and other fiat withdrawals had already been restored, Reuters reported via The Economic Times. An earlier Reuters report said the dollar cash option first came back on November 2.economictimes.indiatimes.com+1

In Recovery Update #7 on November 4, Binance said it had replenished about 98% of the affected assets. It is buying the rest through market purchases and over-the-counter deals, Milenio reported. The same update widened its proof-of-reserves snapshot to 44 tokens, up from 10, according to The Crypto Times. Hyperliquid's HYPE ↗ 0.23% token is still missing from the restored list. Binance has not explained why, beyond saying it ranks assets by user demand.cryptotimes.io+1

A week of phased recovery

The breach on October 29 hit five hot wallets, Milenio reported. The FBI has blamed the attack on North Korea's TraderTraitor unit, according to Reuters. Withdrawals first came back on November 1 for 15 tokens, including Bitcoin ↘ 0.48% and ether. That day customers took out a net $3.64 billion in about 9.5 hours, or 2.1% of the exchange's assets, Reuters reported. A November 3 update added more than 100 assets across nine networks.milenio.com+3

Binance has paid for the losses from its corporate treasury, an insurance fund and its emergency reserve for users. About half of the stolen funds were stablecoins, and issuers have frozen them, including more than $1.1 billion in USDC frozen by Circle ↘ 3.61%, Reuters reported.reuters.com

The exchange says users will not bear the cost. "Binance will absorb the financial impact of the stolen funds, not our users," co-CEO Richard Teng wrote when withdrawals restarted, CNN reported. Analysts still warn that the theft could slow institutional money coming into crypto. "A hack at a crypto exchange is bank robbery at the speed of the internet," Ari Redbord of TRM Labs told Reuters.cnn.com+1