Binance Announces Full Reimbursement Plan and Service Restoration Timeline
Following the recent security incident, Binance's co-CEO has provided detailed updates on the platform's response measures. The exchange has committed to covering all losses using corporate funds, ensuring no user assets are affected.
Financial Safeguards and Compensation
Binance has allocated over $6.34 billion in corporate capital for reimbursement purposes. Approximately $5 billion of this amount is already held in the affected native tokens including USDC, USDT, BTC, ETH, and BNB, facilitating efficient compensation processing.
Critically, the security breach was confined to the platform's own hot wallet system. All user funds remain securely stored in cold wallets and were completely unaffected by the incident, thanks to established isolation protocols.
Incident Investigation and Technical Analysis
Preliminary investigations indicate this was a sophisticated coordinated attack rather than individual action. The attackers gained access through multiple intrusion points and employed self-destruct tools to erase forensic traces.
Technical analysis revealed that the attackers exploited the EIP‑7702 multisignature protocol's permission mechanisms to obtain on-chain execution rights for hot wallets, bypassing standard approval processes. This discovery prompted the temporary suspension of withdrawal services for comprehensive security reinforcement.
- Service Restoration Schedule: Withdrawal functionality reconstruction is underway, with full restoration expected within 40 hours (before Sunday deadline)
- Security Audit Enhancement: Company-wide security audits are being conducted simultaneously to identify potential vulnerabilities
- Asset Replenishment Strategy: Remaining required token assets will be acquired through market trading and OTC channels
Transparency Commitments and Asset Recovery
Binance plans to release a complete Proof of Reserves (POR) report next Monday, with efforts to publish a preliminary version earlier. This report will provide transparent data on platform asset holdings to reinforce user confidence.
Concurrently, the platform has initiated asset recovery procedures, collaborating with law enforcement agencies, on-chain intelligence analysts, and other exchanges to trace the flow of stolen funds. This multi-party cooperation aims to enhance recovery success rates.
The platform leadership expressed gratitude for user patience during the resolution process and acknowledged support from partners and regulatory authorities. Binance has pledged continued strengthening of security frameworks to prevent similar incidents in the future.