EXCHANGES 02/11
Binance reopens withdrawals $3.6 billion walks out on day one
Withdrawals resumed after the $6.3 billion theft, the FBI named a North Korean crew, and users pulled a net $3.6 billion in nine hours.
Binance switched withdrawals back on this weekend, three days after the largest theft in the industry's history, and the first thing a lot of customers did was leave.
Between 06:00 and 15:30 UTC on Sunday, Binance processed $4.6 billion in withdrawals against $1.0 billion in deposits — a net outflow of $3.6 billion, or 2.1% of everything the exchange holds, according to figures the company published.
What happened
Attackers drained roughly $6.3 billion from Binance wallets late last week. The exchange froze deposits and withdrawals outright while it worked out the damage. On Saturday the FBI said the group responsible was TraderTraitor, a North Korean state operation, and that the stolen assets were being converted mainly into Ethereum ahead of laundering.
Binance's position is that users will not eat the loss. It said it had covered 95% of the stolen assets by Sunday and was still buying the rest — the less liquid tokens that "take longer time to source at the required scale" — and that "Binance will bear the financial impact of the stolen funds." Withdrawals came back in phases by network: bitcoin was still partially suspended on Sunday morning, Ethereum deposits were normal but withdrawals throttled, and the status page warned of delays.
Binance has spent roughly half of the bitcoin in its SAFU reserve — about $580 million — on the clean-up, per CoinDesk. The wallet held just over 7,500 BTC before the hack.
The market's reaction
Not panic, but not confidence either. Bitcoin fell 1.9% on Monday to about $76,700, Ethereum 1.1% to $2,248, Solana 3.1% to $91.56, per Motley Fool's market wrap. BNB, the exchange's own token, is off 6.4% on the week. The spot bitcoin ETFs barely moved: IBIT −0.02%, FBTC −0.16%.
The one buyer who showed up on schedule was Strategy. Michael Saylor's company disclosed its first purchase in two weeks — 811 BTC for about $65.5 million, an average of $80,846 a coin — taking its pile to 849,327 BTC. Note the average price: it is above where bitcoin trades today.
The $76,000 level is the one traders are watching. A clean break below it, with the US midterms tomorrow and a run of big tech earnings this week, would invite more selling. The Binance outflows are the reason it matters right now: the exchange is a net seller of whatever it has to source to make customers whole.
Why the number isn't the story
$6.3 billion dwarfs Bybit's $1.5 billion loss last year, and it is the same attacker. The pattern is now established: a top-five exchange, a state-level crew, a nine-figure-to-ten-figure hole, and a promise that customers are covered. Twice in two years that promise has held. Whether it holds a third time depends on balance sheets nobody outside those companies has seen audited.
The practical takeaway hasn't changed since Mt. Gox: an exchange balance is an IOU. Sunday's $3.6 billion was the market saying it remembers.
Sources
- TechCrunch — Binance resumes withdrawals following $6.3 billion breach (Nov 1)
- CNBC — Binance resumes withdrawals following $6.3 billion hack, says 90% of stolen user assets are covered (Oct 31)
- Bloomberg — Binance suspends deposits, withdrawals after $6.3 billion hack (Oct 29)
- The Motley Fool — Crypto Market Today, Nov. 2
- CoinDesk — Bitcoin is breaking a midterm election pattern going back to 2014 (SAFU figures)