Binance said it will resume withdrawals after recovering the bulk of the roughly $6 billion stolen in a hack of the exchange, according to Investing.com. The recovery is a rare outcome for a breach of that size, and the resumption of withdrawals removes the immediate operational freeze that had locked customer funds in place.
But the market reaction has not followed the recovery. Separate reporting from Investing.com says bitcoin faces further downside risk because fear generated by the hack is still elevated, even as the exchange moves to restore normal function. That gap matters: recovering stolen funds fixes Binance's balance sheet, but it does not automatically fix the confidence of traders who watched a major exchange get breached for billions of dollars.
The two developments together describe a typical pattern after exchange hacks. The technical and financial resolution can arrive quickly once an exchange tracks down stolen assets, while the sentiment damage, measured here by rising fear readings, takes longer to clear because it depends on traders trusting custodial security again rather than on any single balance being made whole.
It is not yet clear what fraction of the $6 billion remains unrecovered, nor how long withdrawal volumes will take to normalize once the freeze lifts.