Binance Sets Nov. 2 Proof of Reserves Deadline as Withdrawals Stay Paused After Hack

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Binance Sets Nov. 2 Proof of Reserves Deadline as Withdrawals Stay Paused After Hack
PrimeXBT Editorial Team
Reviewed by PrimeXBT

Binance co-CEO Richard Teng says the exchange will publish a full Proof of Reserves report by Monday, Nov. 2, while withdrawals stay paused after a hack. Binance estimates the breach had a roughly $6.3 billion impact and says it will cover the losses with company funds.

Binance will publish a full Proof of Reserves report by Monday, Nov. 2, Teng said on Oct. 30, and withdrawals remain suspended until its rebuilt service passes testing. He also kept a conditional Sunday restart target, saying Binance hopes users can withdraw before then.

Withdrawal restart depends on testing

Teng said Binance was on track to restore withdrawals within 40 hours. Earlier that day, in its 4:47 a.m. ET update, Binance had expected to resume withdrawals in 45 hours. Deposits remained unaffected.

In a video update, Teng said Binance is rebuilding its withdrawal service and will not restart it until it passes rigorous testing. Binance said the unauthorized outflows stopped when it paused withdrawals.

Company funds back the losses

Teng said Binance has reserved over $6.34 billion in company funds to cover stolen assets, with $5 billion already held in the affected tokens, including USDC, USDT, Bitcoin, Ether and BNB. The exchange is buying the remaining tokens through market and over-the-counter channels and will verify those purchases in the reserve report.

Binance's funding announcement puts frozen assets at around $3 billion, separate from the company-fund commitment. Those assets remain subject to recovery and verification, and a freeze does not mean the money has been returned.

Investigators find more breach points

Teng said investigators uncovered additional breach points beyond an initially suspected compromised laptop. An attacker obtained onchain execution approval over a hot wallet without passing through Binance's normal approval controls, he said. Binance is reviewing its employee devices, cloud systems, key management and signing infrastructure.

Teng said Binance hopes to provide an initial view of its reserves before the full Monday report, though he did not specify a publication time or time zone. According to Teng, "Your assets are safe".

Sources: The Defiant, The Defiant

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