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Binance Users Withdraw $3.6bn After $6.3bn Hack

Customers of Binance, the world’s largest cryptocurrency exchange, withdrew about $3.6 billion in assets after the platform resumed transactions on Sunday.

The move followed a major cyberattack in which $6.3 billion worth of digital assets were stolen.

Binance had suspended all transactions after the incident, which major organisations including the United States Federal Bureau of Investigation have attributed to North Korea. In a statement, the exchange said it processed $4.649 billion in withdrawals and $1.01 billion in deposits between 06:00 and 15:30 GMT on 1 November, resulting in a net outflow of roughly $3.64 billion.

The company noted that there was an initial spike in withdrawals, which later declined and began to stabilise. The net outflow represented just over two per cent of the $171 billion in assets under its management.

Binance said it had already covered about 95 per cent of the stolen assets and remained committed to fully compensating all losses. It had reserved more than $6.3 billion to address the impact of the attack and has resumed withdrawals of major cryptocurrencies such as Bitcoin and Ethereum.

The attack has been linked to the North Korean cybercrime group known as TraderTraitor or the Lazarus Group. Preliminary investigations suggested the breach may have started from a compromised laptop belonging to an engineer, allowing unauthorised transactions.

Eniola Odetoye

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