$3.64 Billion Withdrawn from Binance Following $6.3 Billion Crypto Heist
Customers withdrew $3.64 billion from Binance following a significant security breach that saw hackers steal approximately $6.3 billion in cryptocurrency. This incident prompted users to withdraw about 2.1% of the exchange’s total assets. Binance has reported that the outflows are stabilizing as it resumes services after the attack.
Binance, which had $171 billion in assets under management as of October 28, noted that deposit volumes remained substantial despite the initial surge in withdrawals. Ari Redbord, global head of policy at TRM Labs, characterized the withdrawals as a precautionary reaction rather than an indication of capital flight. The pace of withdrawals is being monitored closely as a measure of customer trust in the platform following one of the largest thefts in cryptocurrency history.
In response to the breach, Binance has reassured users that the financial impact will not affect them. The exchange has replaced approximately 95% of the stolen assets using its own funds, amounting to around $6 billion. The remaining 5% consists of less liquid cryptocurrencies that may take longer to source. Binance resumed withdrawals in phases, initially allowing transactions for 15 cryptocurrencies, including Bitcoin and Ether, prioritizing tokens based on user demand over the past week.
Despite Binance’s efforts, data from crypto analytics platform DefiLlama indicated higher outflows of $5.81 billion, an increase from earlier reports. Binance disputed these figures, claiming they did not account for certain deposits into its new hot wallet. The exchange stated that its last update on X is the most accurate representation of the situation.
The broader cryptocurrency market is showing signs of recovery after the initial shock. Bitcoin, which had fallen to a six-week low, traded above $78,000 on Monday, while Ether rebounded to around $2,287 after hitting a two-month low. However, the combined market capitalization of the two largest stablecoins, USDT and USDC, has decreased by approximately $1.2 billion since Friday. Binance has allocated around $6.34 billion from its corporate treasury and other funds to cover the losses from the breach.
