CryptoSlate
Binance warned customers that scammers may exploit withdrawal delays as the exchange restores access after an Oct. 29 hot-wallet breach that stole approximately $6.3 billion in cryptocurrencies. The exchange says about 95% of affected assets have been replaced, while withdrawals are returning in phases and another reopening phase is scheduled for Nov. 3.
Why it matters
Fraudsters may pose as Binance staff, offer to speed up withdrawals or sell priority access, and promote fake compensation claims or proof-of-reserves websites. They may also send small crypto transfers with malicious instructions or direct customers to move funds into supposedly secure wallets. Binance says it does not charge to unlock withdrawals or offer paid recovery services.
The risk is that approving a malicious wallet permission can let attackers transfer assets without further authorization, potentially causing irreversible losses. Customers with pending withdrawals should check status in the Binance app and verify suspicious communications through the exchange’s official verification service.
Market impact
Binance says the remaining 5% of affected assets are less-liquid cryptocurrencies that are harder to acquire in sufficient quantities. The exchange is replenishing them through market purchases and over-the-counter transactions, separately from efforts to trace and recover the stolen funds.
Binance also completed a zero-knowledge proof for its Oct. 31 reserve snapshot, covering ten major cryptocurrencies and allowing customers to verify that their balances were included and backed at least 1:1 without revealing account holdings. The snapshot reflects balances at 00:00 UTC on Oct. 31; it does not establish the exchange’s current financial position or independently audit overall solvency. Another snapshot covering additional cryptocurrencies is planned for Nov. 4, with proof generation expected to take 40 to 50 hours.
Frequently asked questions
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How are scammers targeting Binance customers during the withdrawal reopening?
They may impersonate Binance staff, offer faster withdrawals or compensation, sell queue priority, or send phishing links and malicious wallet instructions.
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What can happen if a customer approves a malicious wallet permission?
Attackers may be able to transfer the customer's assets without further authorization, potentially causing losses that cannot be reversed.
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How much of the affected assets does Binance say it has replaced?
Binance says approximately 95% have been replaced. The remaining 5% consists of less-liquid cryptocurrencies that are harder to acquire in sufficient quantities.
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What does Binance's Oct. 31 zero-knowledge reserve proof verify?
It lets customers verify that their balances were included in the snapshot and backed by reserves of at least 1:1, without revealing individual account holdings.
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Does the reserve snapshot prove Binance's current solvency?
No. It covers balances recorded at 00:00 UTC on Oct. 31 and does not establish Binance's current financial position or independently audit its overall solvency.
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