Binance Users Withdraw Billions After Hack

Binance users moved $3.64 billion out of the platform in the hours after the company reopened its withdrawal services on Sunday. The exchange had suspended transfers following a theft of $6.3 billion that occurred on Thursday night. This sum represents the largest crypto heist to date.

The company processed $4.65 billion in outgoing withdrawals and $1.01 billion in incoming deposits during a nine-and-a-half-hour window. These figures equate to 2.1 percent of the total value of assets held on the platform the day before the breach. Binance stated it is using a phased approach to restore access, ensuring stability and security checks are completed for each network and asset pair before reopening.

The resumption began with users holding Ethereum, USDT, and USDC tokens on the Ethereum blockchain, alongside some assets on the BNB Smart Chain. By later in the day, the company allowed withdrawals for holders of other tokens, including Dogecoin and Solana. Binance indicated that token prioritization was based on user demand over the previous week, noting that traffic volume could cause temporary delays in processing times.

The Federal Bureau of Investigation blamed TraderTraitor, a hacker group linked to North Korea, for the incident on Saturday. The FBI stated it expected the stolen funds to be converted and further laundered. This group was previously identified by the FBI as responsible for a $1.5 billion theft from the crypto exchange Bybit in the prior year.

Binance announced it would reimburse customers who lost assets in the hack. The company has assembled a reserve equal to 95 percent of the stolen amount, funded by its own revenues and an emergency fund. It is currently working to purchase the remaining 5 percent of tokens on the open market, a process that takes longer because these specific assets are less liquid.

An initial internal investigation revealed that an engineer's laptop had been compromised, though the company later identified additional points of breach. Richard Teng, co-chief executive of Binance, said the firm is rebuilding and retesting its entire infrastructure system while conducting a full security review. The company is collaborating with law enforcement and blockchain analytics firms and plans to publish a detailed report of its findings.

Binance described the resumption of withdrawals as a major milestone while noting that work continues on strengthening safeguards and completing the recovery process.