KUALA LUMPUR – In an unprecedented display of emergency balance-sheet firepower, global cryptocurrency giant Binance has plugged 90 per cent of the damages stemming from a catastrophic US$6.3 billion security breach, drawing entirely on company coffers to shield affected users.
The exchange confirmed it has mobilized more than US$6.34 billion to settle losses, executing heavy spot-market and over-the-counter (OTC) token buybacks to restore balances.
“The coverage rate has now reached 90 per cent,” Binance announced, marking a sharp jump from the roughly 80 per cent secured in initial containment efforts.
In a categorical guarantee to calm an anxious market, the exchange affirmed: “Binance, not our users, will bear the financial burden of the stolen funds.”
Top-tier and high-liquidity digital assets—including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USD Coin (USDC), XRP, USD1, RLUSD, and Zcash (ZEC)—have now been 100 per cent covered.
The remaining 10 per cent deficit is tied up in illiquid altcoins, which Binance said it is actively purchasing across open and OTC markets until every lost token is fully restored.
The firm’s immediate focus has pivoted to operational resumption, with platform-wide customer withdrawals scheduled to reopen on Nov 1.
To defuse lingering insolvency fears, Binance released a fresh zero-knowledge proof-of-reserves snapshot, allowing traders to cryptographically verify that all client assets remain backed at least 1:1.
The crisis unfolded Thursday when Binance flagged an investigation into an anomalous security event while maintaining funds were safe. By Saturday, the full gravity emerged: a massive breach evaluated at US$6.3 billion, mitigated only in part by a swift inter-exchange freeze that locked down US$3 billion of the loot.
Regulatory crosshairs: The securities backdrop
The fallout lands against a fraught backdrop with global securities regulators. The U.S. Securities and Exchange Commission (SEC) and international watchdogs—including Malaysia’s Securities Commission (SC)—have long kept Binance under close surveillance over custodial risks, internal risk-management frameworks, and investor protections.
Securities authorities have repeatedly cautioned that unregulated or offshore trading platforms expose retail participants to severe cybersecurity vectors and opaque asset handling.
Binance’s aggressive push to publicly publish cryptographic proof-of-reserves and absorb the multibillion-dollar shortfall directly aims to reassure global regulators that client balances remain segregated and solvent despite historic system breaches. – November 1, 2026