Crypto roundup: Coinbase, Binance and KuCoin restrictions
November 2 brought new restrictions on cryptocurrency custody, withdrawals and trading across several major exchanges, alongside fresh evidence concerning a security breach in Brazil. In today’s crypto roundup, Coinbase Prime is excluding Vault balances from automatic AERO and VELO conversion, Bitquery questions Mercado Bitcoin’s attack-containment timeline, and Binance Japan continues restricting withdrawals for dozens of tokens despite reporting that customer assets are unaffected. Bitget is preparing to close automated SOXX futures positions during an ETF split, while KuCoin has announced 23 token delistings and launched tokenized U.S. stocks with extensive geographic restrictions. Coinbase also resolved a disruption affecting its decentralized trading, borrowing and lending services.
Coinbase Prime excludes Vault assets from AERO migration
Coinbase began migrating Aerodrome Finance (AERO) and Velodrome Finance (VELO) into the new Aero token on November 2, but institutional customers face different treatment depending on whether their assets are held in Prime Trading or Prime Vault.
According to Coinbase Prime’s official maintenance notice, eligible Prime Trading balances will be converted automatically between November 2 and 6. Existing AERO balances convert at a 1:1 ratio, while each VELO converts into approximately 0.044 units of the replacement AERO token.
Ordinary Coinbase customers are covered by a shorter migration window ending November 4. Coinbase said the conversion will carry no transaction fees and that AERO trading will remain available, although sends and receives are temporarily suspended during the process.
The institutional custody arrangement is different. Coinbase explicitly states that AERO and VELO held in Prime Vault will not be converted automatically.
Prime Vault customers were instructed to transfer their holdings into Prime Trading before November 2 to qualify for the automated process. For AERO, Coinbase also offered withdrawal to a compatible self-custodial wallet before the deadline.
Legacy AERO was scheduled for delisting from Prime Vault on November 2, with the replacement token expected to become available in Vault on November 6. Coinbase said Prime Vault and Trading would continue supporting VELO sends and receives, although VELO held in Vault remains excluded from automatic conversion.
Same exchange, same tokens, but the conversion depends on which custody account holds them.
The notices do not explain how an institutional customer who missed the deadline can exchange remaining legacy AERO held in Prime Vault, or whether Coinbase will provide a seperate recovery arrangement after delisting. They also do not disclose the quantity of affected institutional assets or the number of customers who failed to transfer their balances in time.
The exclusion should not be interpreted as confirmation that the underlying tokens are lost. Coinbase has specified different operational arrangements for its custody products, but the publicly available notice leaves the post-deadline treatment of legacy Vault balances unresolved.
Separately, Coinbase reported degraded performance across its decentralized exchange, Borrow and Lend products beginning at 00:14 Pacific Standard Time on November 2.
The company warned that customers could experience increased failures when initiating or completing transactions. It continued investigating at 01:41 PST, implemented a fix by 06:49 and marked the incident resolved at 09:52 PST, approximately nine hours and 38 minutes after the first notice.
Coinbase said customer funds remained safe. Its public status record did not identify the technical cause or confirm that the underlying blockchain protocols had experienced corresponding failures. Centralized trading and payments were not identified as affected services.
The incident resembles the earlier simultaneous disruption of Coinbase’s DEX, Borrow and Lend products on September 16–17, which lasted 14 minutes. The recurrence involves the same product combination, but there is no confirmed evidence linking the technical causes of the two incidents.
Mercado Bitcoin’s $48.5 million attack timeline challenged
Brazilian cryptocurrency exchange Mercado Bitcoin faces new questions over when it contained a November 2 security breach after blockchain analytics company Bitquery identified suspicious transactions continuing more than two hours after the exchange’s public containment statement.
Mercado Bitcoin confirmed a security incident and temporarily suspended deposits and withdrawals. The exchange said it had contained the attack and maintained that customers would not suffer losses.
Initial reporting based on blockchain security monitoring identified more than $40 million in suspicious transfers. Bitquery’s November 2 investigation estimated that approximately $48.5 million had been transferred from wallets associated with Mercado Bitcoin across 10 blockchains.
The research firm calculated that Ethereum accounted for approximately $29.5 million of the total, while the remaining losses involved Bitcoin and eight other networks. Bitquery said the initial hot-wallet transfers across the monitored chains were completed in approximately 25 minutes.
Its more consequential finding concerns a subsequent sequence of transfers from customer deposit addresses.
According to Bitquery, 35,853 Ethereum deposit addresses associated with Mercado Bitcoin transferred their remaining balances to an attacker-linked wallet between 12:10 and at least 15:44 UTC. Those transfers represented approximately $261,000, substantially less than the value removed from the exchange’s main hot wallets.
Mercado Bitcoin had publicly described the incident as contained at approximately 12:56 UTC, placing more than two hours of the observed deposit-address activity after its statement.
The hot wallets were already emptied, but the deposit addresses were still sending funds afterward.
Bitquery argues that the observed transactions indicate access to a mechanism capable of authorizing transfers from individual customer deposit addresses, potentially extending beyond the initially compromised hot-wallet infrastructure.
That interpretation remains the research firm’s assessment. The public transaction chronology does not independently establish when every authorization was created, whether all later transfers required fresh attacker access or what precisely Mercado Bitcoin meant when it described the incident as contained.
The $48.5 million figure also depends partly on wallet attribution. Bitquery acknowledges that several source addresses lacked public Mercado Bitcoin labels and were included based on transaction patterns and timing. Its calculations further include a thinly traded token valued at approximately $1.21 million, with the aggregate declining to around $47.2 million if that asset is excluded.
Bitquery additionally reported that Tether and Paxos had frozen approximately $7.3 million in attacker-associated assets. That figure represents restrictions on token movement, not confirmed funds returned to Mercado Bitcoin. The research firm said Circle had not frozen the USDC and EURC it identified by the investigation’s cutoff.
There is no independently authenticated final loss total or complete explanation from Mercado Bitcoin addressing the post-containment deposit-address activity.
The unresolved issue is whether the exchange’s containment announcement referred only to its primary hot-wallet systems or to all infrastructure capable of authorizing withdrawals. The available on-chain evidence identifies transactions after the announcement, but does not by itself establish that the same technical compromise remained active throughout that entire period.
Binance Japan restores banking access but limits crypto withdrawals
Binance Japan continued restricting cryptocurrency withdrawals for dozens of assets on November 2 despite reporting that its customer holdings remained secure following the $6.3 billion security breach at Binance Global.
In an official update describing service status at 16:00 Japan Standard Time, the Japanese exchange confirmed that withdrawals had fully resumed for eight cryptocurrencies: BTC, ETH, BNB, XRP, SOL, TRX, DOGE and SUI.
AVAX, GRAM and ARB were partially available, meaning withdrawals had resumed on some supported blockchains but not others.
More than 40 additional tokens remained unavailable for withdrawal, including WBTC, LINK, XLM, ADA, BCH, LTC, NEAR, SHIB, PEPE, TAO, HBAR and ATOM.
Binance Japan said the restrictions were introduced as a precaution after the global security incident identified on October 30 in Japan. It conducted additional wallet-system and account-balance checks and reported that all customer assets remained securely held, with no identified impact on its customers’ balances.
The company has not disclosed a complete timetable for restoring the remaining assets or the specific technical requirements governing each token’s reopening.
Funds reported as secure, yet withdrawals for many assets still unavailable.
The update extends the phased recovery described in DaveFinances’ earlier report on Binance’s withdrawal restart after the $6.3 billion breach. Binance Global began reopening selected networks on November 1 and reported having replaced approximately 95% of the stolen assets using company resources.
Binance Japan’s restrictions should not be treated as evidence that its assets were stolen or that it uses the same compromised wallet infrastructure as Binance Global. The Japanese operator has not disclosed whether the extended restrictions reflect shared technical dependencies, independently imposed security checks or other operational considerations.
At the same time, Binance Japan experienced a separate interruption involving its GMO Aozora Net Bank payment route.
The disruption began around 11:00 JST on November 1, affecting yen deposits and withdrawals through the bank. Deposits resumed at approximately 13:00 JST on November 2, while withdrawals remained unavailable until 16:45 JST.
The withdrawal restriction therefore lasted approximately 29 hours and 45 minutes. Deposit access was restored after roughly 26 hours.
Binance Japan confirmed both services had resumed and directed affected customers to support. The exchange identified PayPay Money and Docomo SMTB Net Bank as alternative routes that continued supporting deposits and withdrawals during the interruption.
The bank-route problem and the cryptocurrency withdrawal restrictions were disclosed as separate operational incidents. No evidence has established a shared cause, and the company has not reported how many transfers were delayed or whether individual payments required manual reconciliation.
Bitget bot settlements and KuCoin delistings change trader access
Bitget announced that automated trading strategies holding SOXXUSDT perpetual futures will be terminated ahead of a three-for-one split of the iShares Semiconductor ETF (SOXX), even though ordinary futures positions will generally be adjusted without being closed.
The November 2 announcement sets the corporate-action adjustment for November 5. Under the conversion, existing SOXXUSDT futures positions will have their contract quantities multiplied by three and average entry prices divided by three.
Bitget said the adjustment is designed to preserve total position value, cost and unrealized profit or loss. Its example converts a 100-contract position at an entry price of 600 into 300 contracts at an entry price of 200, leaving the notional position value unchanged at 60,000.
Trading is scheduled for suspension beginning at 15:00 UTC+8 on November 5, with an initial expected reopening at 17:10. Bitget cautioned that resumption could occur later, depending on the availability of the adjusted index price.
Automated strategies will recieve different treatment.
Approximately five minutes before suspension, Bitget will remove the affected futures from its trading-bot system. Active bots will be terminated automatically, and their positions cash-settled at the prevailing mark price, with the resulting assets returned to users’ accounts.
The bots will not be restored automatically when trading resumes. Customers wishing to continue automated strategies must create new bots after the feature becomes available again.
Bitget recommended that customers manually terminate affected bots one day before the suspension if they prefer to control the timing of settlement.
Ordinary traders face additional changes. Pending orders and advanced orders, including stop-loss and take-profit instructions, will be canceled without automatic restoration. Positions that cannot be adjusted because of account risk or other system limitations may also be cash-settled instead of converted.
Copy-trading relationships, by contrast, are expected to continue through the adjustment without requiring manual action.
The split itself is designed to leave the economic value of existing exposure unchanged. Bot users, though, will have their positions closed before that adjustment and may face a different market price if they later re-establish exposure.
KuCoin separately announced plans to delist 23 tokens on November 5, including BULLA, DOLO, ES, SAROS, SUNDOG and XTER.
The exchange scheduled deposits for closure at 08:00 UTC on November 3. Affected trading bots will shut down at 06:00 UTC on November 5, followed by termination of the corresponding spot markets at 08:00 UTC.
Withdrawals are scheduled to remain available until December 7 at 08:00 UTC, but KuCoin’s announcement contains two restrictions relevant to remaining holders.
First, the exchange reserves the right to terminate withdrawals before the published deadline if a project’s underlying blockchain or transfer infrastructure becomes unavailable. Second, KuCoin says any remaining assets may be converted into stablecoins after withdrawal services close, but such conversion is not guaranteed.
The announced December 7 deadline therefore provides a scheduled final opportunity to withdraw, not an unconditional commitment that every affected token will remain transferable until that date.
BULLA is a particularly notable inclusion because Binance recently introduced emergency pricing controls for BULLA futures while LBank separately suspended deposits. The actions concern different exchanges and products, and no common technical or financial cause has been established.
KuCoin’s other November 2 announcement moved in the opposite direction, expanding trading access through five tokenized U.S. equities on Solana.
The exchange scheduled trading for Amazon (AMZNX), Coinbase (COINX) and Meta (METAX) tokens at 10:00 UTC, followed by Intel (INTCX) and Nvidia (NVDAX) at 11:00 UTC.
KuCoin describes the xStocks products as fully collateralized by the corresponding underlying shares, held with a regulated custodian. Its announcement does not identify that custodian by name or establish that token holders possess the same direct shareholder rights as investors holding conventional shares.
The products also face extensive geographic restrictions. Customers in the United States, United Kingdom, Canada, Australia, Japan, Hong Kong and numerous European countries are excluded from trading them.
More U.S. stock exposure on a crypto exchange, but not for customers in many of the markets where those shares ordinarily trade.
Other exchanges have been expanding similar products, including OKX’s recent expansion of tokenized-stock markets, highlighting how geographic eligibility and product structure can differ even when platforms reference the same underlying securities.
The U.S. Securities and Exchange Commission addressed these structural differences in its January 2026 statement on tokenized securities, distinguishing issuer-sponsored tokenization from arrangements operated by unaffiliated third parties. The regulator’s staff explained that tokenized products can differ in legal structure and holder rights, notwithstanding their use of the same underlying securities.
KuCoin’s distribution restrictions do not establish whether its particular tokens qualify for any U.S. regulatory exemption, nor do they demonstrate that the products are authorized for retail sale in every jurisdiction absent from the exclusion list.
The November 2 developments illustrate several distinct limits on access to digital assets. Coinbase Prime’s conversion depends on custody account type, Binance Japan’s withdrawal restoration varies by token and network, Bitget’s split treatment depends on trading strategy, and KuCoin’s products are governed by delisting deadlines or geographic eligibility. For Mercado Bitcoin, the unresolved issue is more fundamental: whether the exchange had fully contained its wallet compromise when it announced that the attack was stopped.
Johan Shamshad is a financial markets writer at Dave Finances covering cryptocurrencies, trading platforms, brokers, fintech, financial regulation, and developments across global markets. He previously worked at Gulf News, adding newsroom experience to his coverage of fast-moving financial and digital-asset markets.
His work focuses on identifying market-moving events, company developments, regulatory changes, product launches, and shifts in trading and financial infrastructure.
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