Cryptocurrency exchange Binance says it has replenished 90% of the assets affected by its $6.3 billion security breach, marking a significant step in its efforts to protect customer holdings after one of the largest reported cryptocurrency thefts.
The exchange said on October 31 that the coverage had increased from approximately 80% in its previous recovery update. It has set aside around $6.34 billion in company funds to absorb the financial impact of the incident, with the remaining 10% comprising less-liquid cryptocurrency tokens that may take longer to acquire.
Binance has maintained that customers will not bear the losses arising from the theft. The latest update also includes a fresh Proof of Reserves snapshot and a revised timeline for restoring withdrawal services.
Binance Uses Reserve Funds And Corporate Treasury
The replenishment effort draws on three sources: Binance’s Secure Asset Fund for Users (SAFU), a portion of its Futures Insurance Fund and the company’s own treasury.
SAFU is an emergency reserve established by Binance in 2018 to protect users during major security incidents and other exceptional events. The exchange had previously announced that it was setting aside more than $6.34 billion to cover the stolen assets.
Binance said a partial deployment of SAFU would support the latest replenishment. It also allocated part of its Futures Insurance Fund, which is designed to protect the exchange’s futures trading system against losses arising from liquidations.
The company said the remaining balance of the Futures Insurance Fund would stay above the level required under its risk-management framework. It has also committed to replenishing SAFU to bring the fund back to approximately $1 billion.
The exchange said it would continue purchasing the remaining affected tokens through cryptocurrency markets and over-the-counter transactions. It is also working with industry partners to obtain assets that may be difficult to source in large quantities.
Ten Major Tokens Now Fully Backed
Binance said customer holdings in 10 major cryptocurrencies are now backed at 100%. These include Bitcoin, Ether, USDT, BNB, Solana, USDC, XRP, USD1, RLUSD and ZEC.
The remaining 10% consists of tokens outside this group. According to the exchange, these assets have lower liquidity, meaning fewer units may be readily available for purchase without affecting market prices.
The distinction matters because replenishing an asset does not necessarily mean recovering the cryptocurrency from the attackers. Binance is using its own financial resources and reserves to restore the affected asset coverage while efforts to trace and freeze stolen funds continue separately.
The exchange has said it will continue buying the outstanding tokens until all affected assets are covered. It has not provided a final date for completing these purchases.
New Proof Of Reserves Snapshot Released
Alongside the recovery update, Binance said it had taken a fresh Proof of Reserves snapshot at 00:00 UTC on October 31. The updated snapshot has been published on its platform.
Proof of Reserves is a mechanism through which cryptocurrency exchanges disclose information about the assets they hold against customer balances. It is intended to help users assess whether the platform has sufficient assets to cover their holdings.
Binance said the full zero-knowledge cryptographic proof would take approximately 40 to 50 hours to generate because of the computing work involved. It expected the complete proof to be available by November 3.
Once generated, users holding any of the 10 fully backed tokens will be able to independently verify that their assets have at least 1:1 backing, according to the exchange.
The latest disclosure is intended to provide additional visibility into the exchange’s financial position following the breach. However, a Proof of Reserves snapshot is not, by itself, an independent confirmation of how the attack occurred or whether the stolen funds have been recovered.
Withdrawals Expected To Resume On November 1
Binance said it remained on schedule to resume withdrawal services on Sunday, November 1. The exchange had temporarily suspended withdrawals following the breach while it worked to secure its systems and address the affected assets.
The incident involved approximately $6.3 billion in stolen cryptocurrency. Binance co-CEO Richard Teng described it as a complex attack involving a compromised laptop and malicious software apparently designed to erase evidence of the intrusion, complicating the investigation.
The company has not yet published a complete technical account of how the attackers gained access or how the security failure unfolded. The investigation and efforts to trace the stolen cryptocurrency remain ongoing.
What This Means For Cryptocurrency Users
The replenishment announcement offers reassurance to Binance customers because the exchange says it will absorb the financial impact rather than pass the losses on to users. However, the development should not be confused with the recovery of 90% of the stolen cryptocurrency from the attackers.
Instead, the figure reflects the proportion of affected assets Binance says it has covered using its own financial resources and reserve funds. The remaining tokens still need to be acquired, while the full cryptographic proof and the resumption of withdrawals remain important next steps.
For the wider cryptocurrency industry, the incident highlights the importance of emergency reserves, transparent asset reporting and the ability of exchanges to maintain customer balances after a major security failure. Whether Binance can complete the remaining replenishment and restore normal services within its stated timeline will be closely watched by users and the wider market.
