Binance experienced a significant exodus of funds following the resumption of withdrawals after a massive hack. The exchange reported $3.64 billion in net outflows as users rushed to move their assets off the platform. Between 6 a.m. and 3:30 p.m. UTC on November 1, Binance processed $4.65 billion in withdrawals and $1.01 billion in deposits. The net outflows accounted for 2.1% of Binance's $171 billion in total assets, based on its latest proof-of-reserves data.
Binance noted that withdrawal volumes had declined and were stabilizing after an initial surge, while deposit volumes remained strong. The exchange began restoring withdrawals in phases at 6 a.m. UTC on Sunday, with all 15 networks and assets in the initial phase fully operational by 12:36 p.m. UTC. Testing continued for the remaining networks and assets.
Changpeng Zhao, Binance's founder and former CEO, sought to reassure users on X, stating that '98% choose to stay!' He emphasized that most of the net outflows occurred within the first couple of hours after withdrawals resumed. Zhao also highlighted that 'Trust isn't earned by what you say in good times. It's earned by what you do in hard times.'
The withdrawals followed a record $6.3 billion hack attributed to North Korean hackers, identified by the FBI as the TraderTraitor operation. Binance has committed to absorbing the financial impact of the stolen funds rather than passing the losses on to users. The exchange reported covering around 95% of the impacted amount, up from 90% in its previous update. The remaining 5% consists of less liquid tokens that will take longer to source.