Binance, the world’s largest cryptocurrency exchange by market cap, says it will begin restoring withdrawal services in phases from November 1, after replacing 95 percent of funds affected by a security incident.
In its fourth recovery update published on X on Sunday,
Binance said deposits remain open and are not affected by the incident.
The exchange said the first phase would begin between 6:00
and 9:00 universal coordinated time (UTC), with additional networks and assets
to become available after completing security and operational readiness checks.
“We are taking a phased approach by prioritizing tokens
based on the past week data of user demand, so that each network and asset pair
can be restored carefully, with stability and security checks completed before
access is reopened,” Binance said.
“During the initial rollout, users may experience temporary
delays or longer processing times due to traffic volume.”
Binance advised customers whose withdrawal requests failed
during the rollout to try again after a short while, adding that additional
networks and assets would become available once they are ready.
The company also disclosed that it had covered approximately
95 percent of the amount affected by the incident, up from 90 percent in its
previous update.
“Binance has now covered approximately 95% of the impacted
amount, up from 90% in our prior update,” it said.
The exchange said the outstanding 5 percent comprised tokens
outside the top 10, which are less liquid in the market and took longer to
source at the required scale.
“We continue purchasing the remaining affected assets
through market and OTC channels,” Binance said.
The company said Bitcoin (BTC), Ethereum (ETH), USDT, BNB,
Solana (SOL), USDC, XRP, USD1, RLUSD and Zcash (ZEC) balances are fully backed
at 100 percent.
Binance said withdrawals were initially suspended as a
precaution to allow its teams to work to contain the incident, assess its
impact, restore affected services, and complete security checks.
“We did not take this decision lightly. We understand how
important reliable access to withdrawals is for our users,” the company said.
“However, our priority was to protect users, safeguard the
platform, and complete the necessary security checks before restoring
services.”
The exchange said its teams have conducted enhanced security
reviews of affected services, assessed withdrawal infrastructure, worked with
law enforcement and industry partners to trace and recover stolen funds, and
replenish affected assets using company resources.
Binance also reiterated that customers would not bear the
financial impact of the stolen funds.
“As we have said throughout this incident: user funds remain
safe. Binance will absorb the financial impact of the stolen funds, not our
users,” the company update said.
Binance said it will also publish a post-incident report
with further details after the investigation is completed.
The company promised to continue strengthening its
safeguards, completing the recovery process, and monitoring the platform as
withdrawal services return in phases.
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