Could the Binance Freeze Block Withdrawals Even If Losses Are Covered?

Binance said on Thursday, October 29, that a security incident had an estimated impact of about $6.3 billion, with $3 billion already frozen. The exchange temporarily suspended deposits and withdrawals while it checked systems and traced assets. A spokesperson told Fox Business that user funds remain safe and that Binance will cover the losses. Founder Changpeng Zhao wrote that it looked like a hack, but the company had not officially called it one.

Tether said it had frozen nearly $1.57 billion connected to the incident. Reuters reported that Circle froze more than $800 million. Those actions can stop particular identified tokens from moving. They do not show that every customer has been repaid, or that every other crypto platform was hit. Bitcoin fell about 2% to a six-week low of $77,646 in early Asian trading Friday. Ether fell about 2% to $2,238.76, and BNB fell more than 8% over 24 hours to $694, Fox Business reported from Reuters and CoinGecko.

A market-price move is not an individual account balance. The verified consumer issue is suspended access plus the company’s promise to absorb losses, while the amount and cause were still being investigated.

Could this freeze keep a Binance customer from moving funds? Yes. Deposits and withdrawals were temporarily suspended. Binance said customers will not bear the loss, but that pledge is not the same as access already being restored.