Binance initiates phased crypto withdrawals, starting with Bitcoin after hack

Binance, the world’s largest cryptocurrency exchange, has begun allowing users to withdraw their funds again, starting with Bitcoin. The move comes after a cyber‑attack that stole roughly $6.3 billion from the platform in May. Withdrawals will be rolled out in phases, with Bitcoin users getting the first access, followed by other major coins in the coming weeks.

The hack exposed vulnerabilities in Binance’s security architecture, with attackers exploiting a flaw that let them move assets from the exchange’s hot wallets. About 2.5 million users were impacted, and the total loss was estimated at $6.3 billion, the biggest single‑incident theft in crypto history. Binance’s chief executive, Changpeng Zhao, announced that the company would reimburse all affected users and promised to strengthen its security measures. Regulators in several jurisdictions, including the United States and the European Union, have been monitoring the situation closely, citing concerns about systemic risk.

In the first phase, Bitcoin withdrawals will be limited to a set amount per user, with a daily cap of $10,000 and a 30‑day lock‑in period for the remaining balance. After a week, users can move additional Bitcoin, and then the platform will open withdrawals for Ethereum and other top‑tier coins. Binance says the phased approach is designed to manage the risk of a sudden spike in withdrawal requests and to ensure the stability of its liquidity. Users who have not yet received their funds can check their status on the Binance support portal, where a dedicated team is handling inquiries.

The reopening is a key step toward restoring confidence in the market after the breach. Analysts say the move will help prevent a wave of panic withdrawals that could destabilize the broader crypto ecosystem. Binance also announced plans to invest in a new security framework, including multi‑factor authentication and hardware‑based cold storage for all major assets. Regulators are likely to review the exchange’s compliance measures before approving full operational normalcy. The phased withdrawal plan signals that Binance is working to recover from the setback while protecting its users and the wider financial system.