Binance has announced that it has fully covered user assets affected by a recent $6.34 billion security breach, deploying its own resources to restore impacted funds. The exchange has also un
Binance has announced that it has fully covered user assets affected by a recent $6.34 billion security breach, deploying its own resources to restore impacted funds. The exchange has also unveiled a significant upgrade to its Proof of Reserves mechanism, now covering a broader range of cryptocurrencies.
The breach, which took place on October 29, resulted in the unauthorized removal of approximately $6.34 billion in assets from Binance’s platform. Following the incident, Binance temporarily suspended withdrawals as it launched an internal investigation to trace the source and impact of the attack.
Binance stated that by October 31 it had replaced about 90% of affected customer funds. The coverage increased incrementally, with the figure reaching 95% by November 1 and 98% by November 4. The exchange said that ongoing efforts were focused on replenishing the remaining less-liquid tokens.
To manage the compensation process, Binance utilized funds from its corporate treasury, the Secure Asset Fund for Users, and its futures insurance fund. The company confirmed that its total allocation to address the losses exceeded $6.34 billion.
Customer withdrawals gradually resumed on November 1, with the platform restoring access to most supported networks and cryptocurrencies. During the investigation, Binance said assets worth $2.85 billion were either frozen or intercepted in connection with the breached funds.
Binance emphasized its commitment to user protection by ensuring more than 100% asset coverage, stating that all affected customer funds are now fully restored through a combination of corporate and emergency reserves.
In cooperation with law enforcement agencies and blockchain partners, Binance has continued tracking the stolen assets. The internal review found that some employee systems had been compromised. The exchange responded by revoking relevant credentials, strengthening wallet security, and pledging ongoing cybersecurity audits.
Binance expanded its Proof of Reserves (PoR) snapshot to cover 44 cryptocurrencies, up from ten in the previous assessment. The latest snapshot recorded balances at 00:00 UTC on November 4, 2026, adding transparency for a wider set of listed assets.
The exchange has employed Merkle tree architecture and zk-SNARK cryptography in its PoR verification process. This allows users to independently verify that their holdings are backed 1:1, without disclosing sensitive account details. Initially, only Bitcoin, Ethereum, BNB, XRP, Solana, USDT, USDC, RLUSD, USD1, and Zcash were included in the PoR process. Full backing has now been confirmed for these original ten tokens, and efforts are ongoing for the remainder.
Binance informed customers that it will generate a new zero-knowledge proof for the November 4 snapshot within 50 to 60 hours from the record time. Once completed, users can access their verification records on the Binance website using an open-source tool provided by the exchange.
The company advised that certain less-liquid tokens in the remaining 2% of affected assets will be replenished through both market and over-the-counter purchases, with regular updates planned as reserves and asset security efforts continue.
In the aftermath of the hack and broader asset coverage, users are paying closer attention to reserve transparency and real-time balance verification. With volatility and security events impacting a wide range of tokens, features such as those in CryptoAppsy’s customizable portfolio and live news monitoring tool become particularly valuable. These solutions allow users to track their individual holdings across assets like BNB and XRP, receive instant updates on reserve changes, and respond quickly to new security reports.
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