Binance Hack 2026 Update: The world's largest cryptocurrency exchange plans to resume withdrawals this weekend. The SAFU emergency fund and corporate capital are intended to fully cover all user losses — however, experts doubt whether the reserves are sufficient.
On October 29, 2026, Binance hot wallets on at least ten different blockchains were emptied simultaneously. TRM Labs now estimates the total damage at $6.36 billion (CNBC) — significantly more than initial on-chain estimates. This makes the attack four times larger than the previous record holder, the Bybit hack of February 2025 (around $1.5 billion according to Forbes).
| Blockchain | Outflow Value | Main Assets |
|---|---|---|
| Ethereum | ~$3.79 billion | ETH, USDT, USDC, and other tokens |
| Bitcoin | ~$1.47 billion (~18,270 BTC) | BTC |
| Tron | ~$630 million | USDT on the Tron network |
| Other Networks | ~$460 million | various altcoins |
| Total (TRM Labs) | ~$6.36 billion | — |
Binance has communicated repeatedly and unequivocally: "User funds are completely safe." Co-founder Yi He confirmed that deposits have remained fully operational and continue to be processed normally (CNBC).
Binance intends to cover all losses from two sources:
Johnny Mehta, Chief Investment Officer at Axis Investment Management, noted critically to CNBC that the SAFU fund alone can only cover about one-third of total losses of this magnitude. The crucial question is: How much of the approximately $2.39 billion in frozen stablecoins will actually be returned to Binance? (CNBC)
| Frozen by | Amount | Asset |
|---|---|---|
| Tether | ~$1.567 billion | USDT |
| Circle | ~$823 million | USDC |
| Total Frozen | ~$2.39 billion | Stablecoins |
| Not yet frozen | ~$3.3 billion | ETH, BTC, Altcoins |
If the frozen stablecoins are fully returned to Binance, the remaining gap will be significantly reduced. The SAFU fund, in combination with corporate capital, could then be sufficient (CNBC).
| Function | Status | Details |
|---|---|---|
| Deposits | Normal | Running without restrictions according to Yi He |
| Withdrawals | Paused | Resumption announced for the weekend |
| Spot Trading | Active | Order book and trading are running |
| Proof of Reserves | Pending | Binance announces update following security audit |
| Security Audit | In progress | Collaboration with law enforcement and blockchain intelligence |
Forbes reported at the end of October that Binance plans to resume withdrawals this weekend (Forbes). An exact date has not been communicated. The affected hot wallet authorization has already been revoked.
Blockchain forensics experts have largely reconstructed the attack method. According to Business Insider, the hackers used a "self-destruct mechanism" in a smart contract to erase their tracks immediately after the attack — a new dimension of obfuscation that significantly complicates tracking (Business Insider).
The attack utilized EIP-7702 wallet delegation, a feature of the Ethereum Pectra upgrade that allows control over wallets to be temporarily transferred to other addresses (Flicker Finance). The original attacker address was funded via the crypto mixer Tornado Cash.
The initial price drop after the hack became known was significant. Bitcoin fell to a daily low of $76,400, Ethereum crashed from around $2,400 to a low of around $2,190 and is currently trading at around $2,240. Total liquidations in the crypto futures market amounted to $1.57 billion — the majority of which were long positions (CoinDesk).
| Asset | Price before hack | Low after hack | Current price |
|---|---|---|---|
| Bitcoin (BTC) | ~$81,700 | ~$76,400 | ~$77,350 |
| Ethereum (ETH) | ~$2,400 | ~$2,190 | ~$2,240 |
| Total Liquidations | — | — | ~$1.57 billion |
The market has partially stabilized. Bitcoin is trading above $77,000 again — suggesting that investors consider the Binance SAFU promise at least partially credible.
| Scenario | What happens | Market reaction |
|---|---|---|
| Positive | Withdrawals open over the weekend, Tether/Circle return stablecoins, clean Proof of Reserves | BTC above pre-crisis level, confidence rally |
| Neutral | Withdrawals delayed, SAFU details unclear, regulators launch investigation | BTC sideways with increased volatility |
| Negative | Return of frozen stablecoins fails, SAFU coverage gap becomes public | BTC significantly below current level, further loss of confidence |
According to the current status, no. Binance has clearly communicated that it will cover all losses with SAFU funds and corporate capital. Whether this is sufficient depends on how much of the frozen stablecoins are returned. Most analysts currently consider a total loss for users to be unlikely.
Binance has announced it will resume withdrawals over the weekend. A binding date is still pending. Deposits are already working normally again (Forbes).
The perpetrators are still unknown. The attacker address was funded via the crypto mixer Tornado Cash. Binance is working with law enforcement agencies and blockchain intelligence firms.
This Ethereum feature is a function from the Ethereum Pectra upgrade that allows control over normal wallets to be temporarily transferred to smart contracts. The hackers used this to gain control over Binance hot wallets — without having directly stolen the private key.
Only Binance is directly affected. As a general security measure, investors can check whether they wish to move funds to cold wallets in the short term. Read more in the Spargold Glossary.
Not investment advice. All information comes from publicly available sources and reflects the status as of October 31, 2026. The situation continues to evolve.
