Binance Faces $3.64 Billion in Withdrawals After Hack
Following a significant hack, Binance experienced $3.64 billion in net outflows as users withdrew funds after the resumption of withdrawal services.
Binance reported $3.64 billion in net outflows after reopening withdrawals on November 1, following a $6.3 billion hack. The exchange processed $4.65 billion in withdrawals and $1.01 billion in deposits between 6 a.m. and 3:30 p.m. UTC on that day, indicating a rush among customers to move their funds off the platform.
This outflow represents 2.1% of Binance's total assets, which stood at $171 billion according to its latest proof-of-reserves data from October 28. Binance noted that while withdrawal volumes initially spiked, they have since begun to stabilize, with deposit volumes remaining substantial.
The exchange resumed withdrawal services in phases, starting at 6 a.m. UTC, and completed the process for all 15 networks and assets by 12:36 p.m. UTC. Binance founder Changpeng Zhao reassured users on social media, stating that "98% choose to stay!" He emphasized that trust is built during challenging times, adding that most of the net outflows occurred shortly after withdrawals resumed.
The hack, attributed to North Korean hackers by the FBI and identified as TraderTraitor, prompted Binance to announce that it would absorb the financial impact of the stolen funds instead of passing the losses onto its users.