Binance is fully covering the $6.3 billion breach without passing any losses on to user balances. In a second recovery update on October 30, 2026, co-signed by co-CEOs Yi He and Richard Teng, the crypto exchange allocated more than $6.34 billion in reserve funds. The capital used to cover the shortfall is drawn from a combination of the company’s treasury cash and the Secure Asset Fund for Users (SAFU) - Binance’s emergency customer protection fund.
Management stated that it has secured $5 billion in directly impacted crypto assets, including Bitcoin, Ethereum, BNB, USDT, and USDC. That amount covers roughly 80% of the total funds required for user reimbursements. Attention has now shifted from reserve availability to the timeline for restoring withdrawal access to asset owners.
Where the Bailout Funds Come From
To cover the remaining 20% of missing tokens beyond the $5 billion already secured, Binance is repurchasing assets through spot markets and over-the-counter (OTC) deals - direct transactions conducted off open order books. On-chain tracker Lookonchain noted one such inflow: the Ethena project deposited 128.63 million ENA tokens worth roughly $24 million to Binance over an eight-hour period.
At the same time, asset recovery efforts are proceeding through the freezing of stolen funds. Coordination among Binance, law enforcement agencies, blockchain intelligence firms, token issuers, and industry partners has frozen approximately $3 billion in assets on-chain. Of that total, the Arbitrum Security Council froze about $30.5 million in tokens tracked within its ecosystem.
Targeting Withdrawals Within 34 Hours
Restoring customer withdrawal access is the next priority now that replacement liquidity has been arranged. Binance’s technical team is aiming for a phased resumption of withdrawals over the next 34 hours or so, subject to the completion of system-wide security verifications.
Reserve transparency is also on the agenda for public verification. Binance scheduled an initial snapshot for its Proof of Reserves (PoR) system - proof of asset reserve backing - within 12 hours of the announcement. Audit results covering asset holdings and user balances are slated for release on Monday, November 2, 2026.
Not a Private Key Compromise
Findings from Binance’s internal investigation confirmed that the exploit did not stem from a leak of the exchange’s private keys. While suspicion initially centered on a laptop belonging to a DevOps staff member, the investigation expanded beyond that device. Forensics teams identified an additional intrusion point tied to the authorization mechanism of EIP-7702 - a technical standard for account authorization on blockchain networks.
For Binance users, confirmation that all losses are being absorbed by the company provides reassurance regarding their account balances. However, full certainty will truly be tested once phased withdrawals begin within 34 hours and the official reserve audit report is published early next week.
Reported by crypto.news.
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Previously: Binance Hot Wallet Breached for up to $5.8 Billion via EIP-7702 - Stablecoin Issuers Freeze $2.5 Billion
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
