Binance Co-CEO Richard Teng: Withdrawals Expected to Resume Within 40 Hours; Proof-of-Reserves Due Monday

Binance Co-CEO Richard Teng Provides Detailed Update on Security Incident

Binance Co-CEO Richard Teng released a transcript of a video update on the recent security incident late on October 30th, detailing the hackers’ method of gaining authorization for the hot wallet via EIP-7702 and their use of a self-destruct mechanism to erase traces. The company has committed to covering all losses with its own funds, with withdrawals expected to resume within approximately 40 hours, by Sunday. An initial proof of reserves is targeted for release on Monday.

Teng, speaking in a video transcript released around 10:33 PM Taipei time on October 30th, provided further details on the attack’s methodology and timeline. He explained that the attackers exploited the known multi-signature protocol EIP-7702 to obtain on-chain execution authorization for the hot wallet. This authorization was reportedly not subjected to normal approval controls. The attackers then employed a self-destruct mechanism to eliminate their tools and any lingering traces, complicating the investigation.

Teng reiterated that “the company will bear all losses with its own funds,” assuring users of the safety of their assets. He stated that over $6.34 billion in company funds have been set aside, with approximately $5 billion already representing the affected tokens. The remainder is being acquired through market purchases and over-the-counter (OTC) deals.

The Binance executive clarified that the incident was not the work of a single individual, describing it as a complex attack with multiple points of intrusion, following initial suspicions of a laptop compromise. He explained that after the attackers gained hot wallet authorization through EIP-7702, bypassing normal approval processes, Binance was compelled to temporarily halt withdrawals to investigate, rebuild, and re-test its entire infrastructure.

Teng emphasized that Binance never misappropriates customer funds. He stressed that the affected assets were from the company’s own hot wallet, with the vast majority of user assets held in cold storage and only moved to the hot wallet during withdrawal processes. He added that Binance typically holds its operational revenue in crypto assets, reinvesting them into the business and security, which enables the company to absorb losses of this magnitude immediately with its own capital.

The immediate priority is the reconstruction of withdrawal services, which will only be reactivated after rigorous testing. Teng expressed optimism that user withdrawals will be reinstated before the end of Sunday, a timeline that aligns with expectations and is anticipated within approximately 40 hours.

Concurrently, a company-wide security review is underway, encompassing endpoints, cloud infrastructure, key management, and signing processes. The company is also in the process of repurchasing remaining assets and will verify them in the proof of reserves. The initial proof of reserves is targeted for public verification on Monday, with a preliminary version also intended for user review before Monday.

Binance is also continuing its efforts to track and recover the stolen assets in collaboration with law enforcement agencies, on-chain intelligence firms, token issuers, and other exchanges.

For users who remain concerned about their accounts, Teng advised them to check their balances and await the release of the initial proof of reserves. He encouraged users with questions to contact customer support. This latest update shifts the focus from “whether losses will be covered” to “how the breach occurred and when services will be restored and verified,” with the timeline for withdrawals on Sunday and the proof of reserves on Monday becoming key points of interest for the market.