Binance recorded $3.64 billion in net outflows after it reopened withdrawals on Sunday. The reopening followed a $6.3 billion hack. Customers rushed to move their funds off the world’s biggest crypto exchange.
The Numbers
Between 6 a.m. and 3:30 p.m. UTC on Nov. 1, Binance processed $4.65 billion in withdrawals and $1.01 billion in deposits. The exchange shared the figures in a post on X.
The net outflows equal 2.1% of Binance’s $171 billion in total assets. That is based on its latest proof-of-reserves data, dated Oct. 28.
Binance said withdrawal volumes had fallen and were stabilising after an initial spike. Deposit volumes stayed substantial. It also told users to rest assured that market conditions are stable, Reuters reported.
A Phased Reopening
Binance began restoring withdrawals in phases at 6 a.m. UTC on Sunday. By 12:36 p.m. UTC, services had resumed across all 15 networks and assets in the first phase. Testing continues for the remaining networks and assets.
Binance said it is prioritising tokens based on the past week’s data on user demand, Reuters reported.
Circle Freezes More Than $1.1 Billion in USDC
A spokesperson for stablecoin issuer Circle told CNBC that the company activated its incident response procedures. It worked with law enforcement to freeze more than $1.1 billion in USDC linked to the incident. The investigation is ongoing.
The figure is up from Friday, when Circle CEO Jeremy Allaire said more than $800 million in linked USDC had been frozen.
Zhao Tries to Reassure Users
Binance founder and former CEO Changpeng Zhao wrote on X that 98% choose to stay! He said most of the net outflows came in the first couple of hours after withdrawals resumed. He added that trust is earned by what you do in hard times, not by what you say in good times.
The Hack and the Cover
The withdrawals followed a record $6.3 billion hack of Binance last week. The FBI attributed the attack to North Korean hackers and named the operation TraderTraitor.
Binance has said it will absorb the financial impact rather than pass the losses to users. It said it has covered around 95% of the affected amount, up from 90% in its previous update. The remaining 5% is made up of less liquid tokens. They will take longer to source in the quantities needed.
Reuters reported that Binance said earlier on Sunday it had covered $6 billion of the stolen assets. It did this by using company money to buy replacement tokens. Binance has also worked with other crypto firms to freeze some of the affected assets. It said about $3 billion had been located as of Friday.
Co-CEO Yi He said Binance will use 50% of its SAFU funds. The company has committed to refilling the fund to about $1 billion. She also warned of new scams that have emerged amid the chaos of the past few days.
