Binance hack: Users withdraw $3.6bn after record crypto heist

In the wake of a significant security breach, Binance users have withdrawn approximately $3.6 billion from the platform. This incident, which affected around $6.3 billion worth of digital assets, prompted Binance to halt all transactions temporarily.

The exchange reported that it has managed to recover around 95% of the assets that were stolen during the hack, but indicated that retrieving the remaining funds may take additional time. Binance has consistently assured its users that it will cover all losses resulting from the attack.

Between 06:00 and 15:30 GMT on November 1, Binance processed withdrawals totaling $4.649 billion and deposits amounting to $1.01 billion, leading to a net outflow of about $3.64 billion. The company shared this information via a post on social media platform X, noting an initial surge in withdrawals that later decreased and began to stabilize as anticipated.

The withdrawals on that day represented just over 2% of the total $171 billion in assets managed by Binance. In preparation for the repercussions of the security breach, the firm disclosed last week that it has set aside over $6.34 billion in funds.

Binance has resumed withdrawals for more than two dozen major cryptocurrencies, including Bitcoin and Ethereum, and plans to gradually restore additional services as security assessments are completed.

On Saturday, the FBI released a list of cryptocurrency wallet addresses associated with the hacking group and encouraged industry partners to block transactions involving those addresses. In response, Binance quickly urged cryptocurrency issuers to freeze any affected assets.

Initial investigations by Binance suggested that the breach may have originated from a compromised laptop belonging to one of its engineers, which allowed hackers to execute unauthorized transactions. The attack specifically targeted Binance's global centralized exchange, Binance.com, while its U.S. platform reported no impact from the incident.

Binance stated that it has compensated customers for their lost assets using a mix of resources, including its corporate treasury, futures insurance, and emergency reserve funds. The company reiterated its commitment to fully cover the financial impact of the stolen funds.

Cryptocurrencies, unlike traditional cash, are digital assets that are traded on exchanges like Binance and exist solely in electronic form, managed through computers, smartphones, and other digital devices. Founded in China, Binance has grown to serve hundreds of millions of registered users worldwide.