Binance Resumes Phased Withdrawals After Covering 95% of $6.3 Billion Hacker Breach

In a significant development for the global cryptocurrency market, Binance announced early Sunday that it is resuming user withdrawals in a phased manner following a massive security breach. The exchange had previously frozen all deposits and withdrawals after hackers stole approximately $6.3 billion worth of digital assets from its wallets. This move marks a critical step toward restoring normal operations and user confidence in one of the world's largest crypto platforms. Binance stated that it has successfully covered 95% of the stolen assets, emphasizing that the remaining affected assets are less liquid in the market and require more time to source at the necessary scale. The company reaffirmed its commitment to bearing the full financial impact of the incident, explicitly stating that these losses will not be passed on to users. This assurance is crucial for maintaining trust among the platform's vast user base during a period of heightened security scrutiny. Regarding the initial freeze on withdrawals, Binance explained that the decision was not made lightly, acknowledging the importance of reliable access to funds for its users. The company described the freeze as a necessary precaution while its teams worked to contain the incident, assess its impact, restore affected services, and complete rigorous security checks. As of Sunday morning, the company’s network status page displayed a mixed status, with Bitcoin withdrawals and deposits listed as partially suspended, while Ethereum deposits were normal and withdrawals were partially suspended. Users should expect temporary delays or longer processing times due to increased traffic volume as the system reopens. Binance noted that resuming withdrawals is a major milestone, but its work continues to strengthen safeguards, complete the recovery process, and provide ongoing updates. The company also indicated that it will publish a more in-depth incident report once its internal investigation is fully complete. The breach has been attributed to North Korean hackers. On Saturday, the FBI confirmed that a North Korean group known as TraderTraitor was responsible for the attack. The agency reported that the group was primarily converting the stolen assets into Ethereum, with further laundering activities likely to follow. This attribution highlights the growing sophistication of state-sponsored cyber threats targeting the decentralized finance sector.