Binance Customers Withdraw $3.64 Billion as Platform Resumes Operations

Binance customers withdrew $3.64 billion, equivalent to 2.1% of its assets, as the world’s largest cryptocurrency exchange resumed operations following a security breach linked to North Korea that led to the theft of $6.3 billion from the platform last week, Reuters reported.

Binance stated that withdrawals began to stabilize after the initial surge, and deposit volumes remained high in the wake of what analysts believe may be the largest financial heist in history.

After Bitcoin fell to its lowest level in six weeks on Friday, it recovered slightly at the start of the week, surpassing $78,000 on Monday. Ether also dropped to a two-month low on Friday before recovering modestly to $2,287.

Binance allows users to buy, sell, and trade digital assets and has 335 million registered users worldwide. On Sunday, the company said its total assets under management reached $171 billion on October 28.

The Binance theft adds to a recent string of cryptocurrency hacks. According to researchers at TRM Labs, attackers stole $2.9 billion in cryptocurrencies last year through nearly 150 attacks.

The pace of withdrawals serves as an early test of customer confidence in the platform following the breach. The exchange said it had covered 95% of the stolen assets in the incident.

Ari Redbord, Global Head of Policy at the U.S. blockchain analytics firm TRM Labs, said spot Bitcoin-linked exchange-traded funds recorded $643 million in withdrawals on Friday, marking the largest single-day outflows in October, alongside the liquidation of positions worth more than $1.3 billion.

Redbord said, “I understand why this is causing concern among cautious institutional investors.” He added, “A breach of a financial institution means the theft of usernames and passwords. A breach of a cryptocurrency exchange, however, is a bank robbery at internet speed, creating an unstable risk pattern for anyone responsible for other people’s capital.”