Binance, one of the largest global cryptocurrency exchanges, has reopened withdrawals for USDT and USDC on Ethereum and BNB Smart Chain following a temporary freeze that began after a recent security breach. The phased reactivation of withdrawal services represents a significant step towards restoring full user functionality after the hot-wallet incident disrupted on-exchange dollar asset movement.
Withdrawals Reopen in Phased Approach
Binance outlined the reopening process in its Recovery Update #4, confirming that withdrawals for USDT, USDC, and ETH are now operational on Ethereum. On BNB Smart Chain, BNB, USDT, and USDC withdrawals have also resumed as part of the initial phase.
The exchange emphasized that the staged return of withdrawals is designed to prioritize user activity and demand. Other networks, including Bitcoin, Tron (for USDT), Solana, and XRP, are expected to come online after additional security checks. Deposit services, which remained available throughout the incident, are unaffected by the staged reopening.
Binance stated that user funds remain secure and that the platform will cover financial losses resulting from the attack. Delays in withdrawal processing may occur as initial user traffic increases during the phased rollout. Users experiencing failed transactions are encouraged to attempt withdrawals again after a short interval.
Hot-Wallet Breach and Ongoing Recovery
The withdrawal freeze followed a security breach detected in Binance’s hot wallets on October 29, 2026. According to company statements, preliminary investigations pointed to unauthorized access via a compromised DevOps engineer’s laptop. The attacker reportedly reached a service container and executed unauthorized withdrawal requests, although Binance reported no evidence of a private key leak.
In its October 30 security update, Binance estimated the incident’s impact at approximately $6.3 billion. The company pledged to absorb the financial consequences and provide a full technical review once investigations conclude.
By the fourth recovery update, Binance said it had reached a coverage rate of 95% for affected assets, an increase from around 90% in the previous report. Key assets, including BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC, are reportedly fully backed. The remaining 5% of coverage relates to less liquid tokens, which Binance is in the process of acquiring through market and over-the-counter channels.
Mini dictionary: Hot wallet – A cryptocurrency wallet connected to the internet, typically used by exchanges for day-to-day transactions but considered more vulnerable to hacking compared to offline “cold wallets”.
| Asset | Coverage (as of Recovery Update #4) |
|---|---|
| BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, ZEC | 100% |
| All other affected tokens | 95% (pending completion) |
Phased Dollar Withdrawals and Remaining Concerns
The reopening of USDT and USDC withdrawals on Ethereum and BNB Smart Chain restores critical exit routes for users holding these dollar stablecoins on the exchange. Market participants typically use USDT and USDC as stable cash legs for trading and transfers, making network access essential during periods of disruption.
However, the phased return does not fully restore normal operations. Only select networks and assets are currently available for withdrawal, and some processing delays are expected as the platform manages demand and finalizes security checks. The company’s current proof-of-reserves snapshot and asset coverage percentages reflect self-reported figures from Binance’s recovery communications, and a complete technical post-mortem is still pending publication.
Binance stated that user safety remains a priority and that all customer funds affected in the breach are continuing to be supported during its staged reopening of withdrawal services.
The removal of the freeze represents a critical development for users seeking to move dollar-pegged assets off the exchange after weeks of limited access.
