Binance Users Withdraw $3.6 Billion After Record Crypto Hack
Binance Users Withdraw $3.6 Billion After Record Crypto Hack
Customers of Binance have withdrawn approximately $3.64 billion in net funds after the cryptocurrency exchange began restoring withdrawal services following a massive cyberattack.
The incident, which involved the theft of approximately $6.3 billion in digital assets, has raised fresh concerns about security in the cryptocurrency industry. The attack is believed to be one of the largest cryptocurrency thefts ever reported.
Binance, the world’s largest cryptocurrency exchange by trading volume, temporarily suspended withdrawals while investigating the security breach. The company later began restoring services in phases.
The latest withdrawals represent an important test of customer confidence as the exchange works to recover from the incident.
Binance Records $3.64 Billion in Net Withdrawals
Binance reported that customers withdrew $4.65 billion while deposits totalled approximately $1.01 billion during the initial period after withdrawal services resumed on Sunday, November 1.
The difference resulted in net outflows of approximately $3.64 billion.
According to the exchange, the amount represented about 2.1 per cent of its $171 billion in assets under management.
Binance said withdrawal activity initially increased sharply but later began to stabilise. The company also reported that deposits remained substantial during the recovery period.
However, blockchain analytics platform DefiLlama reported higher outflows. Binance disputed the accuracy of that figure, saying it did not fully account for funds transferred into a newly created company wallet.
The difference highlights the challenges of tracking cryptocurrency movements across multiple wallets and blockchain networks.
Despite the withdrawals, Binance has continued working to restore services and reassure customers that their funds remain protected.
Hackers Steal Approximately $6.3 Billion
The security breach occurred on October 29, 2026, when attackers compromised Binance’s hot wallets and stole digital assets worth approximately $6.3 billion.
Hot wallets are cryptocurrency wallets connected to the internet. They allow exchanges to process transactions quickly, but their online connection can expose them to security risks.
Binance described the incident as a complex attack and said its investigation was continuing.
The company initially indicated that a compromised laptop might have played a role in the breach. However, subsequent investigations uncovered additional possible points of entry.
Binance said it had not found evidence that wallet private keys were leaked.
The company also worked with law enforcement agencies, blockchain investigators and other cryptocurrency businesses to trace the stolen funds.
According to Binance, approximately $3 billion in affected assets had been frozen through cooperation with industry partners.
FBI Links Attack to North Korean Hackers
The United States Federal Bureau of Investigation attributed the theft to TraderTraitor, a hacking unit linked to the North Korean government.
The FBI said the group was responsible for stealing more than $6 billion in virtual assets from Binance around October 29.
Investigators observed the attackers converting stolen cryptocurrency into Ethereum. They also warned that the funds could be moved through decentralised finance platforms and instant cryptocurrency exchange services to make tracking and recovery more difficult.
The attribution adds to concerns about North Korea-linked cyber operations targeting the global cryptocurrency industry.
However, the investigation remains important for establishing the full sequence of events and tracing the remaining stolen assets.
Binance Promises to Cover the Losses
Binance has repeatedly assured customers that it will absorb the financial impact of the attack.
The company said it had set aside more than $6.34 billion to cover the stolen assets and was purchasing replacement tokens to restore the affected holdings.
By November 1, Binance said it had covered approximately 95 per cent of the stolen assets. The remaining portion involved less liquid tokens that could take longer to obtain in the required quantities.
The exchange said customers would not be required to bear the financial losses caused by the incident.
Binance also introduced additional security checks and began reopening withdrawals in stages. The phased approach was intended to prioritise assets with high customer demand while allowing technical teams to verify the affected systems.
Crypto Industry Faces Renewed Security Concerns
The Binance incident has renewed questions about the security of cryptocurrency exchanges and the protection of digital assets.
Large exchanges hold substantial amounts of cryptocurrency and process transactions for millions of customers. A successful attack can therefore cause significant financial losses and undermine confidence in the wider market.
The incident also highlights the importance of strong access controls, secure wallet management and independent security reviews.
For Binance, the immediate challenge is to complete the recovery process, provide transparent updates and demonstrate that its systems can safely handle customer transactions.
The company has begun restoring services, but investigators still face the task of tracing the stolen assets and determining exactly how the attackers gained access.
The scale of the breach means its consequences could extend beyond Binance. Other cryptocurrency platforms may also face pressure to review their security arrangements.
For customers, the central questions remain whether the exchange can maintain reliable services and how effectively the cryptocurrency industry can respond to increasingly sophisticated cyberattacks.
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