Binance Experiences $3.64 Billion in Net Outflows Post-Hack
Written with artificial intelligence.
Following a significant hack, Binance reported $3.64 billion in net outflows after resuming withdrawals. This amount represents 2.1% of the exchange's total assets of $171 billion.
Withdrawal Resumption and Outflows
Binance resumed withdrawals on November 1, leading to $4.65 billion in withdrawals and $1.01 billion in deposits processed between 6 a.m. and 3:30 p.m. UTC. This resulted in net outflows of $3.64 billion, which accounts for 2.1% of the exchange's total assets as of its latest proof-of-reserves update on October 28.
Stabilization of Withdrawal Volumes
The exchange noted that while initial withdrawal volumes surged, they have since stabilized, with substantial deposit activity continuing. Withdrawals were restored in phases, with full service resuming by 12:36 p.m. UTC on the same day.
Incident Response and Financial Impact
Circle, the issuer of USDC, reported that it has activated its incident response protocols, successfully freezing over $1.1 billion in USDC linked to the hack. The FBI has attributed the attack to North Korean hackers, designating it as TraderTraitor. Binance has stated it will absorb the losses from the hack, having covered approximately 95% of the stolen funds.
User Trust and Communication
Changpeng Zhao, Binance's founder, reassured users through social media, emphasizing that trust is built through actions during crises. He noted that most net outflows occurred shortly after the resumption of withdrawals.
This article is for information only and is not investment advice.