Binance Sees $3.6 Billion in Net Outflows After Theft
Binance users withdrew a net $3.6bn after the exchange began restoring withdrawals following a $6.3bn theft. The company says withdrawals have eased, most…
Binance customers withdrew a net $3.6bn after the cryptocurrency exchange began reopening withdrawals on Sunday, following a $6.3bn theft from customer accounts. The outflows put the platform’s handling of the breach and access to customer funds under immediate scrutiny.
By Sunday afternoon, Binance had processed $4.6bn in withdrawals and $1bn in deposits, according to the company’s latest proof-of-reserves snapshot. The net outflow represented 2.1% of its $171bn in assets under management.
The withdrawals had initially been frozen while Binance investigated the breach. The exchange began restoring access in phases on Sunday, after the theft, which the FBI attributed to a North Korea-affiliated group.
Users were able to withdraw again. Not across every network.
How much did investors withdraw from Binance?
Binance recorded about $3.6bn in net withdrawals by Sunday afternoon, after processing $4.6bn in withdrawals and $1bn in deposits. The company confirmed the figures in its latest proof-of-reserves snapshot.
Binance said withdrawal volumes had fallen after an initial surge and were stabilising, while deposits remained substantial. The company said it expected to publish a full report on Monday.
The reopening covers selected networks and assets. In the first phase, Binance restored withdrawals for 15 networks and assets, including ethereum and USDT and USDC tokens on the ethereum blockchain, along with some assets held on BNB Smart Chain. Later on Sunday, trading in Dogecoin and Avalanche resumed on their own platforms.
The phased process matters for customers whose assets remain on networks that have not yet reopened. Binance said its team was testing the remaining networks and assets, while co-founder Yi He said other wallets still faced security audits, according to the provided account.
Binance says it will cover the stolen funds
The exchange said it had replenished 90% of the stolen amount. The remaining 10% involved less liquid tokens, which Binance said could take longer to buy back.
Richard Teng, Binance’s co-chief executive, said the company was “committed to covering the remaining 10%” and that users would not bear the financial impact of the hack. Binance also said it had set aside about $6.34bn of company funds to cover losses.
The company said it was using part of its $1bn Secure Asset Fund for Users, a bitcoin reserve intended to protect customers in security breaches, along with some of its futures insurance fund and corporate treasury, to rebuy tokens.
For customers, the central issue is whether they can access their holdings while the exchange completes checks on remaining networks. Binance said it was paying withdrawals from newly generated wallets, and its proof-of-reserves list now includes those addresses. The exchange has not publicly matched each transfer to those wallets.
FBI links the theft to North Korea-affiliated group
The FBI said on Saturday that a group called TraderTraitor, affiliated with North Korea, was responsible for stealing more than $6bn in virtual assets from Binance on or about October 29.
The agency said it had observed the group converting stolen assets into ethereum and expected further laundering through decentralised finance and instant swap services. It urged private-sector entities to block transactions involving addresses the actors were using to move the stolen assets.
Binance co-chief executive Richard Teng described the breach as a “complex attack” involving a compromised laptop and malicious software designed to erase evidence of its activity, making the incident harder to trace and investigate.
The company said withdrawal volumes were stabilising as it continued to test the remaining networks and assets.
