Dr Basha1

Binance CEO Richard Teng said the exchange will cover all losses from its security incident with company funds, having reserved more than $6.34 billion, $5 billion of which is already held in the exact tokens affected, including USDC, USDT, BTC, ETH and BNB. In a video message to users posted on X on Friday, October 30, Teng said customer funds were not affected, and shared new details about how the attack was carried out.
“I want to be clear: we are committed to covering all hacked losses through our company funds,” Teng said. “Your assets are safe.”
Built for the Long Term
Teng said Binance can absorb a loss of this size immediately because of how it manages its own earnings. “Binance has always been built for the long term,” he said. “Most of what we earn from day-to-day operations is held in crypto assets. We have kept a lot of them in the company, and reinvested them — into the business, and into security. Because we believe in crypto, and in the long-term value of this industry.”
That is why most of the affected tokens are already covered, Teng said. Binance is buying the remaining amount through market and OTC channels, and “the good news is that we are recovering stolen assets for users.”
Customer Funds Were Not Affected
Teng addressed the question many users have been asking: how Binance can show their assets were not affected. “We never use any customer funds, so they are not impacted,” he said. “What was affected in this incident was Binance’s own hot wallet.”
Under Binance’s security setup, most user assets are held in cold wallets and moved to a hot wallet only when a user makes a withdrawal. Teng encouraged concerned users to check their account balances and contact customer service with any questions.
How the Attack Was Carried Out
Teng said the attack was complex and not carried out by one person. Binance’s first findings pointed to a compromised laptop, and further investigation has uncovered additional points of breach.
The attackers used EIP-7702, an Ethereum standard that lets a wallet delegate its execution to smart-contract code, to obtain on-chain execution approval over a Binance hot wallet. “That delegation did not pass through our normal approval controls,” Teng said. “That’s why we need to pause the withdrawal service to investigate, rebuild and retest the entire infrastructure system.”
The attackers also used a self-destruct mechanism that “destroyed tooling and traces as they went,” he said, making the investigation harder. Binance is working with law enforcement, blockchain intelligence firms, token issuers and other exchanges to trace and recover the stolen funds, and about $3 billion has already been frozen with partners’ help. “We will do everything within our power to ensure that these bad actors will be held accountable,” Teng said.
Withdrawals Expected Before Sunday
Binance is rebuilding its withdrawal service and will not switch it back on until it passes rigorous testing. “We are very hopeful that users will be able to withdraw prior to our Sunday deadline, which is on track to be within 40 hours,” Teng said.
At the same time, Binance is running a full security review across the company, covering “endpoints, cloud, key management, signing. Everything.”
Proof of Reserves by Monday
Once the remaining token purchases are complete, Binance will verify user assets through its Proof of Reserves. A full report is due by Monday, with an initial view possibly before then.
Teng thanked industry partners, law enforcement and, “most of all,” users for their patience. “We will weather this storm,” he said. “Thank you for the support, and stay safe.”

Binance CEO Yi He said on Friday, October 30, that the exchange’s own crypto holdings already match most of the tokens affected by its security incident, so only a small portion needs to be bought through on-exchange and off-exchange channels. The incident involved about $6.3 billion in assets, she said, and about $3 billion has been frozen with help from industry partners. Binance will use its own funds to match the affected assets in full.
Most Affected Tokens Already Covered
Yi He explained that Binance’s daily revenue and assets are held mostly in crypto, matching the majority of the tokens taken. That means Binance does not need to put the full $6 billion-plus into the market to buy new tokens. The exchange said earlier that $5 billion of its $6.34 billion reserve is already held in the exact tokens affected. Yi He thanked industry partners for their help in freezing assets.
Withdrawals to Resume Within 42 Hours
Withdrawals, paused for nearly a day to protect remaining assets, are expected to resume within the next 42 hours, Yi He said. The team is rebuilding the security environment and wallet settings and conducting security reviews. Withdrawals will reopen only once the environment is confirmed secure and user assets are protected.
Proof of Reserves Update Coming
Binance will update its Proof of Reserves in the coming days so users can verify their assets, Yi He said.
Investigation and Next Steps
The security and technology team’s review so far shows the incident was a complex, multi-faceted attack, Yi He said, and Binance will proceed with extra caution. The exchange plans to publish a detailed technical security audit report and invite industry participants to help build shared security standards. Yi He said Binance will not stop pursuing the attackers, and will work with law enforcement worldwide to investigate the attack team and trace the stolen funds, while increasing its investment in security.

Binance founder Changpeng Zhao (CZ) said the impact of an exchange hack should not be judged by its dollar size alone, arguing that the key question is whether the platform can cover the losses in full. In posts on X on Friday, October 30, he said the Binance incident is the largest in US dollar terms but not in bitcoin terms, and shared a comparison with the Mt. Gox hack.Binance vs. Mt. GoxAccording to CZ’s comparison, the Binance incident involved about $6.36 billion in mixed crypto assets, including about 18,270 BTC and 420,000 ETH. Mt. Gox lost 650,000 to 850,000 BTC between 2011 and 2014, worth $450 million to $500 million at the time but more than $50 billion at today’s prices.MetricBinance (Oct 2026)Mt. Gox (2011–2014)Value at the time~$6.36 billion~$450–500 millionAssets lostMixed crypto, incl. ~18,270 BTC and ~420,000 ETH~650,000–850,000 BTCShare of marketA fraction of the crypto market~5%–7% of all bitcoinValue today~$6.36 billion$50+ billion Market Impact and Who Bears the LossCZ said a better measure of market impact is the share of bitcoin’s supply involved, where Mt. Gox’s loss equaled 5% to 7% of all bitcoin at the time. He also pointed to how many users were affected: at Mt. Gox, then the largest exchange, and at FTX, nearly all users and their assets were hit.The most important question, CZ said, is who bears the loss and whether the platform covers it in full. In Binance’s case, he said, the platform is the only victim. Binance has reserved more than $6.34 billion of company funds to cover all losses.CZ acknowledged the incident is “still a major disaster for the industry, Binance (and me).” “It hurts, but we survive,” he wrote. “Most importantly, we protect our users.”

Binance has shared new details about how Thursday’s security incident unfolded. The exchange said the attack began with a compromised employee laptop and was carried out through several additional points of entry uncovered as its investigation progressed. In updates on Friday, October 30, Binance said it has found no evidence that wallet private keys were leaked, and that all user losses will be fully covered.A Multi-Stage Attack, Not a Single BreachBinance’s initial findings pointed to a compromised laptop belonging to an employee as the starting point. Its subsequent investigation has identified additional points of breach, showing the incident went beyond one device. The exchange said the attack could not have been completed from a single machine, and that no individual engineer’s permissions could have been used to move the funds in “one click.” The theft involved a more complex, multi-step process.Attacks on crypto institutions are typically highly targeted and use sophisticated methods to infiltrate systems, Binance said. Its investigation has not attributed responsibility to any individual, and the company said it will take responsibility and continue upgrading its security.What the Attackers Did Not ReachBinance said it has found no evidence that wallet private keys were compromised. Outflows stopped as soon as the exchange paused withdrawals, cutting off further movement of funds.Tracing and Freezing the FundsBinance estimates the incident affected about $6.3 billion in assets. About $3 billion has been frozen so far, nearly half of the total, and the exchange is working with partners to freeze more. Because fund flows on the blockchain are publicly traceable, Binance is working with law enforcement and blockchain intelligence firms to track the remaining assets.User Funds Are ProtectedBinance said user funds are safe and users will not bear any losses. All losses will be covered in full by its Secure Asset Fund for Users (SAFU) and company funds. Deposits have stayed open and unaffected throughout, and withdrawals remain on track to resume in about 45 hours, with exact timing to be confirmed in an official announcement.A Full Report to FollowThe investigation is ongoing, and Binance said it will share verified details as they become available. Once its review is complete, it plans to publish a full account of the incident and the further security measures it is putting in place. Binance also urged users to rely only on official channels, as phishing links and fake support accounts often appear after security incidents.

Bitcoin climbed back above $81,000 on Wednesday, October 28, rising about 2.3% over 24 hours to roughly $81,400 as a rally in Asian chip stocks spilled into crypto ahead of the Federal Reserve’s rate decision. Every major token traded higher, a sharp turn from Monday, when bitcoin slipped below $80,000 for the first time in more than a week.HYPE and ZEC Lead the MajorsHYPE led the majors, jumping nearly 6% to just above $81, and ZEC rose 5% to about $1,300, according to CoinDesk data. DOGE gained 4%, BNB and SOL rose about 3% each, with BNB just under $760 and SOL above $102, and XRP added 3% to $1.32. Ether climbed 2% to about $2,360, while TRX lagged with a gain of about 1%. Pepe jumped 9.4% to top the CoinDesk 100, as Arkham Intelligence reported that wallets it links to Tron founder Justin Sun hold about $51 million of the token. CoinMarketCap’s Altcoin Season index rose to 60 from 57.Chip Stocks ReboundSouth Korea’s Kospi jumped 6.6% as SK Hynix surged about 11% after reporting record quarterly results, and Nasdaq-100 futures rose 0.5%. Alphabet and Microsoft report earnings after the US close.ETF Inflows Nearly Erase October’s DeficitUS spot bitcoin ETFs took in $176 million on Tuesday, their second straight day of inflows. That brings October’s net flows close to flat after a $774 million two-day exit last week.Leverage Stays ContainedCrypto futures volume rose 7.5% to $163.2 billion while open interest rose only 1.3%, suggesting traders added little new exposure. Funding was mild at 0.0090% for bitcoin and 0.0079% for ether, close to the 0.01% baseline. On Deribit, bitcoin’s one-week put-call skew fell below 1% from nearly 10% a week ago, a sign demand for short-term downside protection is easing, though longer-dated skews still favor puts.Warsh Takes the StageThe Fed announces its decision at 18:00 UTC, with CME FedWatch showing about a 92% chance rates stay at 3.75%–4.00%. Traders will watch Chair Kevin Warsh’s press conference for any signal of a December hike. Monday showed how quickly the market sells when hike talk picks up.