Binance Sees Billions in Outflows After Reopening Withdrawals Following $6.3B Hack - Altcoin Buzz

The exchange resumed withdrawals in phases on November 1, after temporarily suspending the service while investigating the attack and securing its systems. The reopening triggered a sharp increase in withdrawal activity, making the incident an early test of customer confidence in the world's largest cryptocurrency exchange.

Withdrawal Activity

According to Reuters, Binance customers withdrew a net $4.72 billion after withdrawals resumed. The figure represents approximately 2.8% of the exchange's assets, while Binance said withdrawal activity had started stabilizing and that around $2.7 billion had flowed back into the platform.

DefiLlama's exchange dashboard showed a larger figure, recording more than $7 billion in 24-hour net outflows from Binance-linked wallets. The difference reflects the way the two sources measure activity: customer withdrawals reported by Binance are not necessarily identical to movements across publicly tracked exchange wallets.

Rival Exchanges Gain

As Binance experienced outflows, other centralized exchanges recorded positive net inflows. DefiLlama data showed OKX leading with approximately $445.6 million in 24-hour net inflows. Bybit followed with around $111.5 million, while Gate and Bitget also recorded positive flows.

The figures suggest that some capital was moving toward competing trading platforms as Binance restored access. However, they do not establish that all the funds entering OKX or other exchanges came directly from Binance customers.

Recovery Efforts

The outflows came as Binance continued its recovery effort following the $6.3 billion breach. In its November 1 update, the exchange said it had replenished approximately 95% of the affected assets, up from 90% in its previous update. The remaining 5% consisted of less liquid tokens that required additional purchases through market and over-the-counter channels.

Binance said it was using its corporate treasury, its Secure Asset Fund for Users (SAFU), and a portion of its futures insurance fund to cover the losses. It also reiterated that customers would not bear the financial impact of the theft.

Security Concerns

The October 29 incident involved approximately $6.3 billion in unauthorized transfers from Binance-linked wallets across multiple blockchain networks. The FBI has attributed the attack to North Korea's TraderTraitor group.

Blockchain intelligence firms have tracked the stolen assets across several networks, while exchanges, stablecoin issuers, and other industry participants have worked to freeze funds and restrict suspicious transactions. The exchange said it would publish an updated proof-of-reserves report using a new snapshot, allowing users to review the assets backing customer balances.