CoinDesk
Institutional investors are withdrawing digital assets from centralized exchanges after Binance estimated that a hack stole about $6.3 billion. Roughly $3 billion was later frozen, and Binance said it would cover all losses. The scale of withdrawals across other exchanges, and where those funds are going, remain unclear.
Why it matters
The movement suggests the breach is affecting confidence beyond Binance. Centralized exchanges hold customer assets and facilitate trading, so a security failure can put funds at risk and interrupt access. Institutional investors are also rebalancing trading books in response to the incident.
Binance said its security teams added protections after a PHP vulnerability was disclosed and completed remediation after an official patch was released. The exchange said it continues to monitor threats and use multiple layers of security controls.
Market impact
The breach rattled markets: Bitcoin fell below $77,000, and ether also came under pressure. The report does not specify how much investors have withdrawn from exchanges or where the assets are moving, leaving the scale of the broader shift uncertain.
The incident adds to an already persistent security challenge. CertiK recorded $1.28 billion in losses from crypto security incidents in the third quarter of 2026, nearly 56% more than in the previous quarter. Investors will be watching whether exchange withdrawals continue as platforms respond to renewed scrutiny of custody and security controls.
Frequently asked questions
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How much did Binance estimate was stolen in the hack?
Binance estimated that about $6.3 billion in assets was stolen. Roughly $3 billion was later frozen.
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Did Binance say it would cover losses from the breach?
Yes. Binance said it would cover all losses from the hack.
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Why are institutional investors withdrawing assets from exchanges?
Investors are rebalancing trading books after the breach. The incident has also brought exchange custody and security risks back into focus.
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How did the breach affect crypto markets?
The attack rattled markets. Bitcoin fell below $77,000, and ether also came under pressure.
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What did CertiK report about crypto security losses?
CertiK recorded $1.28 billion in crypto security losses in the third quarter of 2026, nearly 56% more than in the previous quarter.
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