Binance, the world’s largest cryptocurrency exchange, reported $3.64 billion in customer withdrawals following a massive security breach last week. The attack, linked to North Korea, resulted in the theft of $6.3 billion in digital assets. Despite the outflows, Binance assured investors that withdrawals were stabilizing and deposit volumes remained strong. The exchange has already covered 95% of the stolen assets using company funds.
Cryptocurrency prices, which had dipped to six-week lows, showed slight recovery over the weekend. Bitcoin traded above $78,000 on Monday, while Ether rebounded to $2,287 after hitting a two-month low. Binance, with 335 million registered users, managed $171 billion in total assets as of October 28. Analysts suggested the withdrawals were more precautionary than indicative of a loss of trust.
The FBI confirmed that North Korea’s state-sponsored unit, TraderTraitor, was responsible for the attack. The theft involved converting stolen assets into Ether, with further laundering expected. US President Donald Trump, however, expressed uncertainty about North Korea’s involvement, stating that the US would address the issue if confirmed.
Binance pledged to bear the financial costs of the hack, allocating $6.34 billion from its Secure Asset Fund for Users (SAFU), Futures Insurance Fund, and corporate treasury. Co-CEO Yi He warned of emerging scams amid the chaos, emphasizing the company’s commitment to replenishing its SAFU fund to $1 billion.