CryptoSlate
Tracked Binance wallets recorded $2.51 billion in net crypto outflows on Nov. 1 as withdrawals resumed after the exchange's $6.3 billion security breach. Bitcoin and USDT accounted for nearly $2 billion of the total, alongside $385 million in USDC and $131 million in wrapped Ethereum.
Why it matters
The outflows followed Binance's phased reopening of withdrawals after the Oct. 29 attack, which the FBI attributed to North Korea's TraderTraitor operation. Binance gradually restored access across 15 blockchain networks after additional security reviews and warned that a surge in withdrawal requests could cause temporary congestion.
The exchange also shifted withdrawals to newly generated wallets and updated its proof-of-reserves wallet list. That change complicates efforts to determine how much of the on-chain movement reflects customers exiting Binance, rather than funds flowing through its new withdrawal infrastructure.
Market impact
Binance says customer funds remain protected and that it will absorb the losses. The exchange reported replenishing about 95% of affected assets through corporate resources and market purchases, while balances in Bitcoin, Ethereum, USDT, USDC, BNB, Solana, XRP, USD1, RLUSD and Zcash were fully backed. Replenishment does not mean the stolen funds have been recovered.
The exchange is working with law enforcement and industry partners to trace the assets and has pledged a detailed post-incident report. Updated proof-of-reserves disclosures and that investigation will offer further information on customer backing and the breach.
Frequently asked questions
-
Which assets accounted for most of Binance's tracked outflows?
Bitcoin outflows were about $912 million and USDT outflows about $1.083 billion. USDC accounted for $385 million and wrapped Ethereum for $131 million.
-
Why are the outflows not a clear measure of customer exits?
Binance moved withdrawals to newly generated wallets. That infrastructure change complicates estimates of how much on-chain movement reflects customers moving assets elsewhere.
-
How did Binance respond to the security breach?
Binance temporarily suspended withdrawals, then gradually restored access across 15 blockchain networks after additional security reviews. It says it will absorb the financial losses.
-
What did Binance say about replenishing affected assets?
The exchange reported replenishing about 95% of affected assets through corporate resources and market purchases. It said balances in several named assets were fully backed.
-
Have the stolen assets been recovered?
No recovery is established in the report. Binance says it is working with law enforcement and industry partners to trace and potentially recover the assets.
CoinTelegraph
WatcherGuru
TheBlock
Crypto News
Crypto Rank News
CoinDesk
WuBlockchain