Binance Records $3.64B Net Outflows After $6.3B Hack
Binance recorded $4.65 billion in withdrawals and $1.01 billion in deposits between 06:00 and 15:30 UTC on November 1, resulting in $3.64 billion in net outflows. The withdrawals followed the phased reopening of services after an October 29 hot-wallet breach that reportedly caused $6.3 billion in losses. The FBI attributed the attack to North Korea’s TraderTraitor group and said stolen funds were being converted mainly into ether.
Binance said withdrawal volumes eased after an initial surge and that withdrawal routes across 15 networks were available by 12:36 UTC. The exchange and its partners froze about $3 billion in stolen assets, while Binance said company funds had restored about 95% of affected customer balances. Deposits remained open as the exchange continued reviewing assets and networks. The outflows represented about 2.1% of Binance’s reported $171 billion in assets.
Binance’s October 31 Proof of Reserves snapshot predates the withdrawal surge. Zero-knowledge verification was still pending, with publication expected by November 3, later than the November 2 expectation cited earlier. Traders are watching Binance outflows, exchange security and reserve transparency as indicators of customer confidence and possible market spillover.
Bearish
The news is bearish for BNB in the short term because the large net outflow, major hot-wallet breach and delayed reserve verification may weaken confidence in Binance and its ecosystem. Traders may reduce exposure to BNB or demand a higher risk premium while assessing whether withdrawals remain orderly and customer balances are fully protected. The reported freeze of about $3 billion in stolen assets, restoration of about 95% of affected balances and easing withdrawal volumes could limit immediate panic, but do not remove uncertainty. Over the longer term, transparent reserve verification and evidence that Binance can maintain liquidity and security could help rebuild confidence and reduce downward pressure. Further withdrawals, security concerns or delays in verification could prolong pressure on BNB.