Binance saw $3.64bn in net outflows as customers withdrew funds after a $6.3bn hack attributed to North Korea. The company says it has covered 95% of the losses.
Binance, the world's largest cryptocurrency exchange, reported a net outflow of $3.64 billion (approximately $3.64 billion USD) from its platform on Sunday, November 1, as customers rushed to withdraw funds following the largest cyber heist in history. The exchange had frozen all transactions after a hack on October 29 that stole $6.3 billion worth of digital assets. While the company states it has covered 95% of the losses using its own reserves, the incident has triggered a significant shakeout in confidence across the crypto industry, with the Federal Bureau of Investigation (FBI) attributing the attack to North Korean state-sponsored hackers.
What happened during the withdrawal surge
After freezing withdrawals to investigate the breach, Binance began a phased reopening on Sunday. Between 06:00 and 15:30 GMT, the platform processed $4.649 billion in withdrawals and $1.01 billion in deposits, resulting in the $3.64 billion net outflow. Binance noted that while there was an "initial spike" in panic withdrawals, the volume has since declined and is stabilizing. This net outflow represents just over 2% of the $171 billion in total assets under management on the platform as of October 28.
The first phase of the reopening allowed users to withdraw major cryptocurrencies, including Bitcoin, Ethereum, and stablecoins like USDT and USDC. The company emphasized that market conditions remained stable and that its team was rigorously testing remaining networks to ensure security before further services resumed.
How Binance is covering the $6.3 billion loss
Despite the massive theft, Binance has pledged that users will not bear the financial impact. The company stated it has reserved $6.34 billion in funds to cover the incident. As of Saturday, Binance reported it had replenished 95% of the stolen assets. The remaining 5% consists of less liquid tokens that may take longer to purchase in the required quantities.
The funds used to replace the stolen crypto came from several internal sources, including:
Part of its $1 billion Secure Asset Fund for Users, a reserve held specifically for security breaches.
Portions of its futures insurance fund.
Its own corporate treasury.
Co-chief executive Richard Teng confirmed that the company is committed to covering the remaining losses, ensuring that customer balances remain intact despite the cyberattack.
North Korea accused of record heist
The FBI officially confirmed on Saturday that the attack was carried out by a North Korea-affiliated cybercrime group known as TraderTraitor, also linked to the Lazarus Group. The FBI stated that North Korea was responsible for the theft of more than $6 billion in virtual assets on or about October 29. Investigators observed the group converting stolen assets into Ethereum, with expectations that the funds would be further laundered through decentralized finance services.
According to Binance, the breach was a "complex attack" that likely began with a compromised laptop belonging to an engineer, allowing hackers to execute unauthorized transactions. The group also used malicious software designed to delete evidence, complicating the investigation. This incident follows a $1.5 billion hack of exchange Bybit in 2025, also attributed to North Korean actors.
Why this matters for the crypto industry
The scale of this hack has raised serious concerns about the security of digital assets and the potential role of artificial intelligence in modern cyberattacks. Security experts note that North Korean hackers may be using AI tools to enhance reconnaissance and social engineering, making them more effective. The incident has rattled confidence in centralized exchanges, with some institutional investors, such as quantitative firm SQS Trading, planning to reduce their capital held on Binance.
However, analysts suggest the industry is maturing, citing Binance's rapid response and transparency. Bitcoin prices, which had plunged nearly 5% following the initial news, stabilized, with the cryptocurrency trading around $78,000 on November 1. The event highlights the vulnerability of even the largest platforms in the crypto space and the ongoing challenge of securing digital assets against state-sponsored threats.
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