Binance Updates Proof of Reserves and Resumes Withdrawals After Major Breach

Binance has made significant updates to its Proof of Reserves wallet list as part of its recovery efforts following a breach that resulted in approximately $6.3 billion being drained from its hot wallets on October 29-30, 2026. The exchange has announced that all withdrawals will now be processed through newly designated addresses, marking a critical step in restoring user confidence.

This update is part of Binance's Recovery Update #3, aimed at demonstrating to customers that the funds backing their balances are intact. The updated Proof of Reserves page now allows users to download a complete list of wallet addresses holding customer assets, enabling them to verify balances on-chain against what they are owed.

A new reserve snapshot was completed on October 31, 2026, showing that ten major assets, including Bitcoin and BNB, were backed by reserves exceeding 100%. Binance has committed over $6.34 billion from corporate resources to replenish the affected assets, which has restored nearly 90% of the drained funds.

Withdrawals were paused during security reviews but resumed on November 1, 2026, with Bitcoin withdrawals coming first, followed by Ethereum and BNB Smart Chain. Users have been warned to expect potential delays due to high traffic as withdrawals ramp up.

Binance's executives have reassured customers that their funds were not lost and that the company is absorbing the financial impact of the breach. The exchange is also preparing a detailed post-incident report to outline the breach's effects and its response.

As Binance continues its recovery, users are encouraged to monitor the situation closely, particularly regarding the anticipated zk-SNARKs proof expected by November 3, 2026, which will allow users to independently verify their balances.

Latest Developments on Binance

• Within the first three hours of reopening withdrawals, approximately $2 billion in Bitcoin, Ethereum, and stablecoins left Binance.
• Withdrawals were frozen after a breach on October 29, where attackers stole about $6.3 billion.
• Binance has implemented new wallet addresses for all future withdrawals, claiming to have replaced about 95% of the stolen assets.
• Despite expectations for a price rally, Bitcoin has only seen a modest increase of 1.05% since the reopening, trading at $78,122.
• Currently, only phase one of the withdrawal process is operational, covering 15 networks, with additional wallets pending security audits.
• Binance has allocated over $6.34 billion of its own funds to cover the losses incurred from the breach.

Latest Updates on Binance

• Binance has covered 90% of the approximately $6.3 billion stolen from its hot wallets, marking it as the largest cryptocurrency hack to date.
• The exchange has allocated over $6.34 billion from its company funds to compensate for the losses.
• All user holdings of major cryptocurrencies, including BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC, are now fully backed.
• Binance utilized its Secure Asset Fund for Users (SAFU), futures insurance fund, and corporate treasury to recover the stolen assets.
• The remaining 10% of the stolen assets consists of less liquid tokens, which may take longer to recover.
• The breach occurred on October 29th at around 20:05 UTC, with the FBI linking the attack to North Korea’s Lazarus Group.
• Approximately $3 billion of the stolen assets has been frozen with assistance from law enforcement and industry partners.
• Binance conducted a new proof-of-reserves snapshot on October 31st and is set to reopen withdrawals on November 1st.

Latest Developments on Binance Hack

A wallet holding stolen funds from the October 29, 2026, Binance hack has moved 485,270 SOL, valued at approximately $46 million, to an unknown address. This transfer was flagged by blockchain tracking service Whale Alert.

Blockchain analytics firms have traced about 970,500 SOL to the initial breach, which was valued at around $96 million at the time of the hack. The recent transfer represents about half of that total.

The October 2026 attack resulted in approximately $6.3 billion stolen, marking it as the largest digital asset theft in history, affecting around 10 blockchains.

The FBI has attributed the breach to TraderTraitor, a North Korean state-linked hacking group associated with the Lazarus Group.

Binance has committed to covering all losses through its Secure Asset Fund for Users (SAFU), with estimates indicating that 90-95% of the losses have already been covered through company reserves.

For SOL holders, there is concern about whether this batch will eventually hit the market, potentially adding selling pressure.