Binance customers withdrew approximately $4.65 billion in cryptocurrency and other assets after the exchange restored withdrawal services. The withdrawals followed a major security breach that resulted in losses estimated at $6.3 billion.
The exchange recorded net outflows of $3.64 billion on Sunday, November 1. Customers moved their funds shortly after withdrawal services became available again.
The withdrawals continued despite Binance announcing that it had replaced approximately 90% of the stolen assets. The company said withdrawal activity had started to stabilize following an initial surge.
According to the exchange, deposits also remained substantial during this period. However, the large withdrawals highlighted concerns among customers following the cyberattack.
Binance Customers Withdraw Billions After Services Resume
Binance resumed withdrawal services at 6 a.m. UTC on November 1. The platform had temporarily suspended withdrawals following the October 29 cyberattack.
Between 6 a.m. and 3:30 p.m. UTC, customers withdrew around $4.65 billion. During the same period, the exchange received approximately $1.01 billion in deposits.
This resulted in net outflows of $3.64 billion. Net outflows represent the difference between the total value withdrawn and deposited.
According to Binance, these outflows accounted for approximately 2.1% of its total assets. The calculation was based on the exchange’s October 28 proof-of-reserves figures. At that time, the platform reported total assets worth $171 billion.
Most withdrawals occurred during the first few hours after services reopened. By 12:36 p.m. UTC, Binance had restored withdrawals across all 15 networks and assets included in the initial reopening.
The exchange continued testing and restoring services for other supported networks and assets.
Binance Replaces 90% of Assets Stolen in Cyberattack
The large withdrawals followed a security incident reported on October 29. Hackers reportedly stole approximately $6.3 billion in cryptocurrency from Binance’s online wallets.
The incident forced the exchange to temporarily suspend withdrawals. The company used the suspension to investigate the breach and strengthen its security systems.
On October 31, Binance announced that it had replaced around 90% of the stolen assets. The exchange used its own financial resources to cover the losses.
These resources included its corporate treasury, Secure Asset Fund for Users (SAFU), and futures insurance fund.
Binance also stated that major cryptocurrencies remained fully backed by reserves. These included Bitcoin, Ethereum, BNB, Solana, XRP, and several stablecoins.
However, the remaining unreplaced assets mainly consisted of less widely traded cryptocurrencies. The company said replacing these assets could take additional time.
The exchange has committed to covering the full financial loss. It has also stated that customers will not bear the cost of the incident.
Binance Founder Attempts to Reassure Customers
Following the withdrawal surge, Binance founder and former CEO Changpeng Zhao addressed customer concerns.
In a post on X, Zhao stated that 98% of customers’ assets remained on the platform. He also pointed out that most withdrawals occurred soon after services resumed.
Meanwhile, Binance reported that withdrawal activity had declined from its initial peak. The company said transaction volumes were gradually becoming more stable.
It also confirmed that deposit activity remained strong despite concerns surrounding the security breach.
FBI Links Cyberattack to North Korean Hacking Group
The US Federal Bureau of Investigation (FBI) attributed the $6.3 billion cryptocurrency theft to TraderTraitor. The hacking group has been linked to North Korea.
The incident is among the largest cryptocurrency thefts ever reported.
Binance is working with security investigators and industry partners to recover stolen funds. The company is also taking steps to prevent similar incidents.
Additionally, the exchange is preparing updated proof-of-reserves information. This will allow customers to review the assets backing their holdings.
Although Binance says it has sufficient resources to cover the losses, customer withdrawals remain significant. The exchange now faces the task of restoring confidence alongside its regular operations.
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The coming period will be important for Binance as it continues addressing security concerns and completing service restoration.
