Binance Resumes Withdrawals After $6.3 Billion Crypto Breach
Cryptocurrency exchange Binance has begun allowing withdrawals in a phased process following a major security breach, while stating that it has covered 95% of the stolen assets.
Radwan AbdulhadiEditor and technology writer
Phased Withdrawal Rollout Begins
Cryptocurrency exchange Binance announced early on Sunday that it would begin allowing withdrawals in a phased process following a major security incident where hackers stole $6.3 billion worth of crypto from its wallets.
The company had previously frozen all deposits and withdrawals to contain the incident. In its latest update, Binance stated that it has now covered 95% of the stolen assets and is actively working to source the remaining affected assets, which are less liquid in the market.
Financial Impact and Asset Coverage
Emphasizing its commitment to platform users, the company stated that it will bear the financial impact of the stolen funds and that these losses will not be passed on to users. Sourcing the remaining assets is taking a longer time due to their lower liquidity at the required scale.
According to details shared by the company regarding the initial operational window, Binance processed $4.6 billion in withdrawals and $1.0 billion in deposits between 6:00 AM and 3:30 PM Coordinated Universal Time, resulting in a net outflow of $3.6 billion, which accounts for 2.1% of its total assets under management.
Network Status and Processing Delays
Binance noted that the decision to freeze withdrawals was a necessary precaution while its security teams worked to contain the loss, assess its impact, restore affected services, and complete necessary security checks.
As the exchange resumes operations in phases depending on network and asset type, users have been advised to check the network status page. As of Sunday morning, the page reflected a mix of normal, partially suspended, and fully suspended statuses across different assets.
Additionally, the company warned that users should expect temporary delays or longer processing times due to high traffic volume during the phased rollout.
Attribution and Investigation
The massive security breach has drawn scrutiny from law enforcement agencies. Binance previously blamed North Korean hackers for the breach, an attribution that was further reinforced when the FBI said that a North Korean group known as TraderTraitor was responsible for the attack.
According to the FBI said report, the threat group has been converting the stolen assets primarily into Ethereum, with further laundering likely to follow.
Binance stated that while resuming withdrawals marks a major milestone, its ongoing work continues. The exchange plans to publish a more in-depth incident report once its internal investigation is fully complete.
Sources
- TechCrunchBinance resumes withdrawals following $6.3 billion breach
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