Binance Sets Aside $6.34 Billion to Cover $6.3 Billion Security Incident; 80% of Losses Already Covered
Date: October 31, 2026
Binance has released its second official security incident update following an incident involving unauthorized withdrawals from its hot wallets, with an estimated impact of approximately $6.3 billion.
According to Binance Co-CEOs Yi He and Richard Teng, the exchange has committed more than $6.34 billion in company funds to cover the affected assets.
80% of the Losses Already Covered
Binance says approximately $5 billion worth of the affected cryptocurrencies has already been secured in matching tokens, representing around 80% of the impacted amount.
The exchange is working to acquire the remaining 20% through market purchases and over-the-counter (OTC) transactions.
Around $3 Billion in Assets Frozen
Binance also reports that approximately $3 billion in affected assets has been frozen on-chain with the help of law enforcement agencies, blockchain intelligence firms and industry partners.
What Happens Next?
Binance has temporarily suspended withdrawals while conducting additional security checks. The company is targeting a phased restoration of withdrawal services, subject to successful security reviews.
It also plans to publish an updated Proof of Reserves report by November 2, 2026.
Important Message for Crypto Users
This incident highlights the importance of exchange security, transparency and proper asset management in the cryptocurrency industry.
Users should follow official Binance announcements and avoid sharing passwords, OTPs or wallet credentials with anyone.
Source: Official Binance Security Incident Update #2, October 30, 2026.
Disclaimer: This article is for informational purposes only and is not financial or investment advice.