Binance's tracked assets rebound $3.4 billion in two days after withdrawals restart

First reported 05 Nov, 01:37 UTCSource: Crypto BriefingLast editorial activity 05 Nov, 01:37 UTCWrite a comment ↓

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Binance's tracked assets rose by $3.4 billion in the two days after the exchange brought withdrawals back online following a hot wallet breach, according to Crypto Briefing. The rebound is the clearest early sign of whether users still trust the exchange after the attack.

How the attack unfolded

Attackers exploited weaknesses in Binance's hot wallets and moved tokens across several blockchains in about 20 minutes. The attack hit on October 29, 2026, at approximately 20:05 UTC, and drained roughly $6.3 billion in tokens. The breach has been attributed to TraderTraitor, a group linked to North Korea.

Binance froze all withdrawals immediately after the attack.

Losses covered from corporate reserves

Binance set aside more than $6.34 billion in corporate resources to cover the losses in full. Part of that money came from its SAFU reserve, an emergency fund designed for precisely this kind of situation, and part came from its futures insurance fund. The coverage figure was later updated to about 95%.

Partners froze roughly $3 billion of assets tied to the hack, which restricted how far the attackers could move or cash out what they had taken. Binance also published a fresh proof-of-reserves snapshot taken at 00:00 UTC on October 31, which it said showed its major assets were fully backed.

Outflows followed by a partial rebound

Withdrawals resumed on November 1, 2026, rolled out in phases across more than 15 networks. Initial net outflows came to around $3.64 billion, roughly 2.1% of Binance's total assets under management, which stand at approximately $171 billion.

In the two days after withdrawals returned, tracked assets climbed by $3.4 billion. That gain sits close to the initial outflows, so the exchange did not fully return to its starting level but recovered most of the lost ground.

The figure carries a caveat. Tracked assets do not separate fresh customer deposits from other balance sheet movements, and Binance was actively buying tokens to replenish what was stolen, which could account for part of the increase.

Open questions

How much of the $3.4 billion rise reflects new customer deposits rather than Binance's own token purchases?
Will the recovery in tracked assets hold beyond the first two days after withdrawals resumed?