Coinbase said it was unaffected by Binance’s reported $6.3 billion security breach, while Binance said it had replenished approximately 98% of the affected assets. The updates were reported by The Block in an article published on November 5, 2026, at 00:57:39 UTC+8.
The breach occurred on October 29. The subsequent statements addressed two distinct issues: Coinbase’s safeguards for customer funds and Binance’s progress in replacing affected assets.
Coinbase describes its custody controls
In a blog post published Wednesday, Coinbase said it keeps more than 99% of customer assets in cold storage. It also described distributed private keys, withdrawal limits and anomaly detection as safeguards against unauthorized transfers.
The U.S. exchange said customer assets are held 1:1, remain the property of customers and are not lent or used without customer authorization. These were Coinbase’s descriptions of its own arrangements, rather than an independent assessment of their effectiveness.
Coinbase also said advances in artificial intelligence were rapidly changing the security landscape and that it would continue investing in security innovation.
Binance cites liquidity constraints in completing replenishment
Binance said Wednesday that it had replenished approximately 98% of the assets affected by the breach. It said it was acquiring the remaining 2% through market and over-the-counter channels, with lower liquidity making those purchases take longer.
That is the report’s explicit link between the recovery process and market liquidity: Binance attributed delays in acquiring the remaining assets to lower liquidity. The report did not establish a broader effect on crypto prices or the market cycle.
Binance also said it had expanded its Proof of Reserves coverage from 10 tokens to 44. A new zero-knowledge proof was expected to take 50 to 60 hours to generate; the report did not say that process had been completed.
AI features in both the reported attack and proposed defenses
On Tuesday, Binance said hackers had used a fake job interview and an internal AI tool to assist the breach.
Binance cofounder and former CEO Changpeng “CZ” Zhao separately called for AI-based defenses and an industry alliance to share lessons and freeze stolen funds faster. Those comments outlined proposed responses, not evidence that such an alliance was already operating.
The distinction is important: Coinbase’s custody statements, Binance’s replenishment figures and the proposed security measures describe different parts of exchange risk. None, on its own, establishes a market turning point or eliminates the uncertainty surrounding a security incident.
