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Binance Resumes Withdrawals After $6.3 Billion Breach

Updated 1:11 PM ET · 12:44 PM ETConfirmedShare on

Technology Desk

In Short: Binance has resumed customer withdrawals after a massive $6.3 billion cryptocurrency theft, with the company absorbing the financial impact.

Al Jazeera and TechCrunch reported that Binance has begun restoring customer withdrawals after hackers stole about $6.3 billion in cryptocurrency, the largest theft of its kind. Al Jazeera noted that the company had replaced approximately 95 percent of the affected assets, while TechCrunch added that Binance would process withdrawals in stages, starting with major cryptocurrencies like Bitcoin and Ether.

Newscord and Thisage provided additional details on the phased restoration of services. Newscord reported that Binance processed $4.6 billion in withdrawals and $1 billion in deposits, resulting in a net outflow of $3.6 billion. Thisage confirmed that the company had initially suspended transactions to investigate the breach and carry out security checks.

The Guardian and The News International highlighted the FBI's involvement, with The Guardian reporting that the FBI blamed North Korean state-sponsored hackers for the theft. The News International noted that Binance saw $3.64 billion in net outflows after resuming operations.

Binance stated in a statement on X that it would absorb the financial impact of the stolen funds, not its users. The company also emphasized that customer funds were safe and that it had located about $3 billion of the stolen assets with partners.

Binance had initially suggested a compromised employee laptop might have enabled the intrusion but later uncovered additional points of breach. Thisage added that the company had stabilized withdrawal requests and transaction volumes following the reopening of services.

TechCrunch and NPR provided insights into the rapid nature of the theft, with TechCrunch noting that the bulk of the heist unfolded in about 20 minutes. NPR reported that Binance worked with blockchain partners to freeze roughly $3 billion in affected assets.

Altcoinbuzz reported discrepancies in the net outflow figures, with Reuters tracking $4.72 billion in net customer withdrawals and DefiLlama recording more than $7 billion in 24-hour net outflows from Binance-linked wallets.

Despite the differing figures, all outlets agreed that Binance had resumed withdrawals in a phased manner, with the company absorbing the financial impact of the stolen funds and working to stabilize its operations.

Binance's decision to absorb the financial impact and its efforts to stabilize operations reflect the company's commitment to protecting its users and maintaining trust in the cryptocurrency market.

Background

What's confirmed

• Binance said it had replaced approximately 95 percent of the affected assets.
• Binance has begun restoring customer withdrawals after hackers stole about $6.3bn in cryptocurrency in a record theft that United States authorities have blamed on North Korea.
• “Binance will absorb the financial impact of the stolen funds, not our users,” the company said in a statement on X on Sunday.
• Binance said withdrawals were stabilizing after an initial spike and deposit volumes had remained "substantial".
• "An attacker moved approximately USD 6.36 billion out of Binance wallets on ten blockchains, most of it in about 20 minutes," the firm said.

What's still developing

• The company said the first stage of its withdrawal restoration covered 15 cryptocurrencies, including Bitcoin, Ether, XRP, Dogecoin and selected USDC and USDT stablecoins.
• “We will continue strengthening our safeguards, completing the recovery process, and providing updates as progress continues.” Binance subsequently shared that between 6am and 3:30pm Coordinated Universal Time, it processed $4.6 billion in withdrawals and $1.0 billion in deposits, for a net outflow of $3.6 billion — 2.1% of its total assets under management.
• Cryptocurrency exchange says 90% of losses covered as FBI blames North Korean state-sponsored group TraderTraitor Cryptocurrency exchange says 90% of losses covered as FBI blames North Korean state-sponsored group TraderTraitor The cryptocurrency exchange Binance has started to allow its customers to withdraw their funds from the platform, as it recovers from a record $6.3bn (£4.7bn) hack.
• “The Federal Bureau of Investigation is releasing information advising the Democratic People’s Republic of Korea (North Korea) was responsible for the theft of more than $6bn in virtual assets from cryptocurrency exchange Binance, on or about October 29,” the law enforcement agency said in a statement.
• Binance sees $3.6B net outflows as crypto exchange resumes withdrawals after $6.3B hack Binance experienced a sharp wave of customer withdrawals, registering approximately $3.64 billion in net outflows after the world's largest cryptocurrency exchange officially reopened its payout networks.
• The bulk of the Binance heist unfolded in around 20 minutes beginning late on Thursday and bore similarities to previous large attacks blamed on North Korea, according to U.S. blockchain analysis firms TRM Labs and Chainalysis.
• Binance, which allows users to buy, sell and trade digital assets, has 335 million registered users globally.
• According to Binance, Bitcoin ($BTC), Ethereum ($ETH), Tether ($USDT), $BNB, Solana ($SOL), USD Coin ($USDC), $XRP, $USD1, $RLUSD, and Zcash ($ZEC) have all reached 100% reserve coverage.
• Users alleged unauthorized wallet withdrawals, including a reported $2.68 million in suspicious transfers.
• Asked about the potential ties to North Korea, a Binance spokesperson said only that the company is "working closely with our law enforcement partners to confirm the identity of the criminals and bring them to justice."

Sources

• Al Jazeeralink
• Boldnewsonlinelink
• Newscordlink
• TechCrunchlink
• The Guardianlink
• The News Internationallink
• Thisagelink
• Koreatimeslink
• The Indian Expresslink
• Fxdailyreportlink
• Tronweeklylink
• CBS Newslink
• NPRlink
• Altcoinbuzzlink
• WarpBeat — background on Binance Reports $6.3 Billion Crypto Theft link
• WarpBeat — background on Binance Reports $3.64 Billion in Outflows After Resuming Withdrawals link
• WBIR Channel 10 — video link