After freezing deposits and withdrawals following a $6.3 billion security breach, Binance has begun a phased restoration of services. Not every asset or network came back simultaneously. Bitcoin withdrawals and deposits remained partially suspended at the latest update; Ethereum deposits returned to normal, while Ethereum withdrawals stayed partially suspended.
Binance warned users to expect temporary delays and longer processing times because of elevated traffic during the reopening window.
The Numbers Behind the Rush to the Exit
A $3.6 billion net outflow sounds alarming, but context matters.
Between 6:00 a.m. and 3:30 p.m. UTC on the day withdrawals resumed, Binance processed approximately $4.6 billion in withdrawals against $1.0 billion in deposits, producing a net outflow of $3.6 billion.
That figure represents 2.1% of the exchange’s reported assets under management, according to Reuters. Reuters also reported that withdrawal volumes initially surged but later began stabilizing, with deposit activity remaining substantial.
Binance Says It Covered the Bill
The exchange replaced approximately 95% of stolen assets with company funds and pledged that customers would not absorb the loss.
Binance said it sourced replacement tokens using its own resources and covered approximately 95% of the stolen assets, according to TechCrunch and Reuters. The remaining 5% consists of less-liquid assets that require additional time to acquire at scale.
Binance said customers would not bear the financial impact of the stolen funds. Co-CEO Richard Teng confirmed the company would absorb all losses, according to CNN-affiliated reporting.
Binance said it would publish a detailed incident report after completing its investigation.
The FBI Named the Culprit
TraderTraitor, a North Korean state-sponsored hacking group, carried out the breach, the FBI said.
The FBI attributed the attack to TraderTraitor, a hacking group linked to the North Korean government, according to PBS NewsHour. PBS NewsHour and Reuters described this breach as the largest cryptocurrency hack on record.
The FBI asked exchanges, blockchain analytics companies, and other industry participants to block transactions associated with identified wallet addresses.
Stolen Funds Are Moving, and Recovery Is Unlikely
Attackers are converting stolen assets into Ethereum and routing them toward decentralized infrastructure, the FBI warned.
The FBI said the attackers were converting stolen cryptocurrency primarily into Ethereum, according to PBS NewsHour and ABC News. Further laundering through decentralized-finance platforms and instant-swap services is expected, the bureau warned.
Recovery becomes extremely difficult once assets move through those services. Blockchain transactions on decentralized networks generally lack a central authority capable of reversing them, though centrally issued assets can sometimes be frozen by their issuers.
Two Issues Still Unresolved
The less-liquid 5% and the full incident report remain outstanding.
Binance has not confirmed how or when it will resolve the remaining less-liquid assets that make up the final 5% of stolen funds, according to TechCrunch and Reuters.
The detailed incident report the company promised had not been published as of the latest available information. That report could provide a fuller public account of how the breach occurred.
