Binance Co-CEO Richard Teng delivered a clear update on the recent security incident that drained roughly $6.3 billion from the exchange’s hot wallets.
He stressed that the company will fully cover every loss using its own resources while rebuilding systems and recovering assets.
What Exactly Happened in the Binance Security Incident?
Attackers targeted Binance’s own hot wallet infrastructure across multiple blockchains. Initial findings pointed to a compromised DevOps engineer’s laptop that granted access to a service container.
Later probes uncovered additional breach points. The attackers employed a self-destruct mechanism that wiped tools and traces.
They also leveraged the EIP-7702 multi-signature protocol to gain on-chain execution approval over a hot wallet without passing normal controls.
Most user assets remain in cold storage and move to hot wallets only for withdrawals.
How Is Binance Covering the Full Losses?
Binance has reserved over $6.34 billion of company funds specifically for this purpose.
Of that total, $5 billion already sits in the exact tokens affected—USDC, USDT, BTC, ETH, BNB and others.
Teams continue purchasing the outstanding balance through open-market and OTC channels.
Teng emphasised that Binance never uses customer funds, so user balances stayed untouched.
The exchange’s practice of holding operating earnings in crypto assets enabled it to absorb a loss of this scale immediately with its own money.
When Will Binance Resume Withdrawals and Share Proof of Reserves?
Withdrawals remain paused while engineers rebuild the entire service and subject it to rigorous testing.
Teng expressed hope that users can withdraw prior to the Sunday, October 31, 2026 deadline—currently tracking within about 40 hours.
Meanwhile, a full Proof of Reserves (PoR) report is scheduled for Monday, with an initial public view expected sooner.
Users can already check their account balances and contact customer service with any questions.
What Recovery Steps and Industry Support Are Underway?
Partners acted quickly to freeze approximately $3 billion of the stolen assets.
Binance continues working hand-in-hand with global law enforcement, blockchain intelligence firms, token issuers and other exchanges to trace remaining funds and hold the perpetrators accountable.
Beyond that, the company is conducting a complete security review of endpoints, cloud systems, key management and signing processes.
This coordinated industry response underscores how shared vigilance strengthens the entire ecosystem.
Binance has repeatedly reassured users that their assets remain safe and that the company stands ready to make everyone whole.
The focus now stays on rapid system restoration, transparent verification and continued recovery efforts.
Users who feel concerned should monitor official channels for the latest progress.
