Binance sees $3.64 billion in net outflows as withdrawals resume after massive hack

Key points

• Binance recorded $3.64 billion in net outflows after reopening withdrawals on Sunday 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 Nov. 1.
• Binance said it had covered around 95% of the impacted amount and would absorb the losses rather than pass them to users.

Binance said it recorded $3.64 billion in net outflows after reopening withdrawals on Sunday following a $6.3 billion hack, as customers rushed to move funds off the platform. 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 Nov. 1, according to a post on X.

The net outflows equaled 2.1% of Binance's $171 billion in total assets, based on its latest proof-of-reserves data as of Oct. 28. Binance said withdrawal volumes had declined and were stabilizing after an initial spike, while deposit volumes remained substantial.

Phased restoration of withdrawals

Binance began restoring withdrawals in phases at 6 a.m. UTC on Sunday. Services resumed across all 15 networks and assets in the initial phase by 12:36 p.m. UTC, and the exchange said testing continued for the remaining networks and assets.

Trust isn't earned by what you say in good times. It's earned by what you do in hard times.

— Changpeng Zhao

Hack and recovery efforts

The withdrawals followed a record $6.3 billion hack of Binance last week. The FBI attributed the attack to North Korean hackers, identifying the operation as TraderTraitor.

Binance has said it would absorb the financial impact of the stolen funds rather than pass the losses on to users. The exchange said it had covered around 95% of the impacted amount, up from 90% in its previous update, with the remaining 5% made up of less liquid tokens that would take longer to source.