WiremarketsDextape brief
Binance Reopens Withdrawals as Hack Recovery Enters Second Week
Binance has reopened withdrawals after its $6.3 billion North Korea hack, covered 95% of losses, and has reserves for the remaining 5%, with post-mortem reviews to stay open.
Dextape brief
Binance resumed customer withdrawals on Sunday, four days after the attackers took about $6.3 billion from its hot wallets. The exchange reopened in phases over the weekend, beginning with bitcoin and later adding 15 networks. To cover the shortfall, the company said it had replenished 90% of the affected amount with its own money, drawing on a user protection fund, part of a futures insurance fund and its corporate treasury. On Sunday the exchange raised coverage to 95%, and the last 5% is tied up in thinner-market tokens that take more time to acquire. It also released an October 31 proof-of-reserves snapshot, and the zero-knowledge proof for that snapshot is finished, so users can check balances with an open-source checker. Another round of withdrawals is slated for Tuesday.
Why it matters: The episode is a major test of whether a large exchange can absorb a loss of this size from company reserves while restoring customer withdrawals, which matters for confidence across the sector.
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