CryptoSlate
Binance processed about $11 billion in withdrawals in the 46 hours to 04:00 UTC on Nov. 3, after reopening services following an Oct. 29 hack that caused $6 billion in losses. About $6 billion in deposits offset the withdrawals, leaving roughly $5 billion in net outflows, equal to about 3.1% of the exchange's previously reported $171 billion in assets.
Why it matters
The withdrawals show the scale of customer movement after a major security breach, even as deposits partially offset the outflow. Binance co-founder Changpeng Zhao said 6% to 10% of withdrawn funds went to competing centralized exchanges, with most moving to self-custody wallets. He cited public reports but did not identify them.
Binance said it absorbed the hack's financial impact from its balance sheet, without borrowing, selling assets or raising money. Co-CEO Richard Teng pointed to improving hourly flows, while Bitwise CEO Hunter Horsley said customers appeared to be responding to the exchange's handling of the breach.
Market impact
Withdrawals peaked at a $936 million net outflow in the hour starting 08:00 UTC on Nov. 1. By the hour starting 03:00 UTC on Nov. 3, deposits of $193 million exceeded withdrawals of $183 million, producing a $10 million positive balance.
Binance began a phased reopening of withdrawals at 04:00 UTC on Nov. 3, including assets on Ethereum, Solana and BNB Smart Chain. The exchange said it would add assets as security checks are completed and publish a detailed post-incident report after its investigation.
Frequently asked questions
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How much did Binance lose in net withdrawals after the hack?
About $11 billion was withdrawn and roughly $6 billion deposited, leaving approximately $5 billion in net outflows.
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How large were Binance's net outflows relative to its reported assets?
The roughly $5 billion in net outflows represented about 3.1% of Binance's previously reported $171 billion in assets.
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When did Binance's withdrawals peak?
The peak came in the hour starting at 08:00 UTC on Nov. 1, when withdrawals exceeded deposits by $936 million.
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What did Changpeng Zhao say happened to most withdrawn funds?
Zhao said 6% to 10% went to competing centralized exchanges and most went to self-custody wallets. He cited public reports without identifying them.
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Which networks were included in Binance's phased withdrawal reopening?
The reopening included assets on Ethereum, Solana and BNB Smart Chain, with more assets to follow as security checks were completed.
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