Executives Reject Insolvency Rumors After $6.3B Exploit

Following a massive $6.3 billion security breach on October 29, the co-founder and co-CEO of the affected cryptocurrency exchange is dismissing comparisons to the 2022 collapse of rival platform FTX.

In a November 2 social media post, Yi He pushed back against claims questioning the exchange's liquidity. She emphasized that the primary focus is auditing security systems before fully reopening customer services.

“Our top priority right now is to ensure the environment is secure, after which users can withdraw their funds and Binance can resume operations,” she stated.

Addressing the parallels to FTX, which failed after a multibillion-dollar asset shortfall, Yi He highlighted that her company has already replenished approximately 95% of the stolen digital assets. The exchange utilized its Secure Asset Fund for Users, corporate treasury, and futures insurance fund to allocate more than $6.34 billion for the recovery effort. Around $5 billion is already held in the corresponding affected tokens.

The trading platform began restoring Bitcoin withdrawals on November 1, later opening transfers for networks like Ethereum, BNB Smart Chain, and Solana. Following the initial resumption of services, the exchange processed about $3.64 billion in net customer withdrawals, representing just 2.1% of its reported assets.

Market Reaction and Frozen Assets

The historic exploit triggered significant shifts in cryptocurrency markets and investment vehicles. On the Friday following the Thursday afternoon attack, U.S. spot Bitcoin ETFs recorded $643.2 million in outflows, marking their largest single-day loss in October. Ethereum ETFs similarly shed $155.7 million, while Solana funds lost $10.8 million.

Bitcoin's price initially dropped approximately 4% to roughly $76,400, leading to the liquidation of over $1.3 billion in leveraged positions. However, the market impact was less severe than previous historical hacks, and the asset steadied near $77,520 by Saturday.

Efforts to contain the stolen funds remain ongoing. The exchange reported that blockchain partners and law enforcement agencies have frozen approximately $3 billion on-chain, while stablecoin issuers Tether and Circle froze more than $2.3 billion. Blockchain investigators at TRM Labs estimated the initial outflows at roughly $6.36 billion spread across 10 networks.

Hacker Wallet Movements

While recovery efforts continue, the perpetrators are actively moving portions of the stolen cryptocurrency. On November 2, blockchain tracking service Whale Alert identified significant transfers originating from an address tagged as "Binance Hack 2026."

At 03:56 UTC, the wallet transferred 40 million XRP, valued at roughly $50.5 million, to an unidentified address. Just 50 seconds prior, an identical transfer of 40 million XRP occurred, moving another $50.44 million to a separate mystery wallet.

The combined transfers moved 80 million XRP, worth approximately $100.9 million. Despite these unauthorized transactions, the exchange maintains that customer balances for XRP and other major assets remain fully backed by company reserves.