23 Daily — Cryptocurrency exchange Binance announced on November 1, 2026, that it has begun a phased resumption of user withdrawals following a $6.3 billion hack, having recovered 95% of the stolen assets. This response highlights the exchange’s resilience and financial responsibility, according to techcrunch.com.
Details of the Hack and Asset Recovery
The hack compromised Binance wallets, resulting in $630 million worth of crypto stolen. Binance immediately froze all deposits and withdrawals. The company has since covered 95% of the lost assets, with the remaining funds harder to source due to lower market liquidity. Binance affirmed that these financial losses will be absorbed by the company and not passed on to users.
Phased Withdrawal Resumption
Binance explained the withdrawal freeze was a necessary precaution while working to contain losses, assess impact, restore affected services, and complete security checks. Withdrawal support is now returning in phases based on network and asset type. For instance, Bitcoin withdrawals and deposits remain partially suspended, whereas Ethereum deposits have normalized and withdrawals partially resumed. Users may experience temporary delays due to high traffic volumes.
Investigation into the Hacker Group
Binance previously attributed the breach to North Korean hackers. The FBI confirmed a North Korean group named TraderTraitor was behind the attack, converting stolen assets primarily into Ethereum with likely further laundering steps. Binance plans to release a comprehensive incident report once their investigation concludes.
Editor's take: Implications for Crypto Security and User Trust
Binance’s ability to recover over 90% of stolen funds and progressively reopen withdrawals demonstrates strong crisis management and financial resilience in the crypto exchange industry. Security and rapid incident response remain critical to maintaining user trust. Entrepreneurs in the crypto space should prioritize multi-layer security defenses, crisis preparedness, transparent communication, and financial safeguards. Verification of such mechanisms can be done via penetration testing and audit reports to ensure security standards and asset protections are met.