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Binance says customer withdrawals are stabilising after a surge following a massive cyberattack linked by the FBI to North Korea. The cryptocurrency exchange has replaced 95% of the stolen assets and pledged to cover the financial losses.
Binance, the world’s largest cryptocurrency exchange, witnessed a surge in customer withdrawals after returning online on Sunday (November 1), following a massive cyberattack that resulted in the theft of $6.3 billion worth of cryptocurrency.
Customers withdrew a net $3.64 billion, equivalent to 2.1 per cent of Binance’s total assets, as of 1530 GMT, the company said. The exchange added that withdrawal levels were now stabilising, while deposit volumes remained substantial.
The company said it had covered approximately 95 per cent of the stolen assets, using its own funds to purchase replacement tokens. The remaining 5 per cent comprises less liquid cryptocurrencies, which could take longer to acquire in the required quantities.
The massive withdrawal wave is an early indication of how the cyberattack could affect customer confidence in Binance, which has around 335 million registered users globally.
Binance said it was gradually restoring withdrawal services, prioritising cryptocurrencies based on customer demand over the past week.
The first phase included 15 tokens, including Bitcoin, Ether, Dogecoin and certain USDC and USDT stablecoins.
The exchange also clarified that the withdrawal figures reflected customer deposits and withdrawals as of 1530 GMT. Crypto analytics platform DefiLlama, meanwhile, reported higher outflows of $5.81 billion on its dashboard.
More from BusinessBinance disputed the accuracy of the latter figure, saying it did not account for transfers made to the company’s new hot wallet.
The Federal Bureau of Investigation (FBI) on Saturday attributed the cyberattack to TraderTraitor, a North Korean state-sponsored hacking group.
According to the FBI, members of the group were observed converting stolen assets into Ether, with authorities expecting further attempts to launder the funds through related technologies.
Blockchain analytics firms TRM Labs and Chainalysis also pointed to North Korea’s involvement, citing similarities with previous attacks attributed to the country. The bulk of the theft reportedly unfolded in approximately 20 minutes late on Thursday.
However, US President Donald Trump said it remained unclear whether North Korea was responsible for the attack.
“We don’t know if it’s North Korea — but if it is, we’ll talk to North Korea about it,” Trump told reporters on Saturday.
Binance has repeatedly assured customers that it will bear the financial cost of the attack and has set aside approximately $6.34 billion in company funds to cover the losses.
The exchange said it had already located around $3 billion of the affected assets with assistance from other cryptocurrency firms.
To replace the stolen tokens, Binance has drawn on its $1 billion Secure Asset Fund for Users (SAFU), its Futures Insurance Fund and its corporate treasury.
Co-CEO Yi He said the company would use 50 per cent of its SAFU reserves for the recovery effort while committing to replenish the fund to approximately $1 billion.
The exchange’s other co-CEO, Richard Teng, described the breach as a complex attack involving a compromised laptop and malicious software designed to erase evidence of its activity.
Binance reported total assets under management of $171 billion as of October 28.
Meanwhile, founder Changpeng Zhao thanked US law enforcement agencies for helping track and freeze the stolen assets, crediting their efforts with limiting the broader impact on cryptocurrency markets.
