Binance restores withdrawals after covering most heist losses
Exchange resumes services in phases after absorbing the impact of a $6.3 billion crypto theft
Binance, the world’s largest cryptocurrency exchange, is preparing to resume crypto withdrawals in phases after successfully covering 95 per cent of the $6.3 billion stolen in a major digital heist.
Phased Resumption of Withdrawal Services
The first phase of withdrawals is scheduled to start between 6:00 AM and 9:00 AM GMT on Sunday. This initial phase will cover popular assets including Bitcoin, Ether, BNB, Solana, XRP, and Dogecoin.
Binance explained that the remaining 5 per cent of stolen tokens involves less liquid assets, which require extra time to source in the needed amounts.
Updating users on the security measures taken, Binance stated on X:
“Since the incident, our teams have taken precautionary measures to safeguard the platform, conducted security assessments, and worked to verify the readiness of affected services. We aim to restore withdrawals progressively as we complete security and readiness checks,” the Binance post on X said.
The exchange also reassured customers regarding deposits: “Deposit services remain open and are not affected by the incident,” it added.
Binance Absorbs Financial Impact to Protect Users
Binance confirmed that it is absorbing the full financial impact of the stolen assets, ensuring users do not face any financial loss.
“As we have said throughout this incident: user funds remain safe,” Binance said.
Explaining the temporary suspension of withdrawals, Binance stated on X that services were paused “while our teams worked to contain the incident loss, assess its impact, restore affected services, and complete security checks”.
The exchange emphasized its focus on safety and security:
“We did not take this decision lightly. We understand how important reliable access to withdrawals is for our users. However, our priority was to protect users, safeguard the platform, and complete the necessary security checks before restoring services.”
FBI Points to State-Sponsored Attackers
The FBI attributed the attack to TraderTraitor, a North Korean state-sponsored hacking group. According to law enforcement statements, group members were seen converting stolen assets into Ether, with ongoing monitoring expected as laundering efforts continue.
Ongoing Security Awareness in Crypto Trading
Despite continuous upgrades to security systems across the industry, digital asset platforms remain key targets for cyber threats.
In 2014, the Mt Gox exchange collapsed following a major Bitcoin theft and technical issues. In 2022, FTX imploded due to fraud and misuse of user funds. Most recently, the FBI linked a $1.5 billion hack on the Bybit exchange to North Korean hackers, highlighting the ongoing importance of digital security.
AI contributed to the creation of this article.