Tracked Binance wallets registered $2.51 billion in net outflows on November 1 as the exchange gradually restored withdrawal services after a $6.3 billion security incident.
According to DeFiLlama data, the outflows comprised approximately $1.08 billion in USDT, $912 million in Bitcoin, $385 million in USDC, and $131 million in wrapped Ethereum.
The surge in withdrawals coincided with Binance’s phased reopening of services following the October 29 attack, which the FBI attributed to North Korea’s TraderTraitor hacking operation.
Binance Restores Withdrawals as Executives Warn of Potential Congestion
In a November 1 announcement, Binance confirmed it was gradually restoring withdrawal access across 15 blockchain networks after completing additional security reviews. The exchange initially reopened withdrawals for Bitcoin, Ethereum, BNB Smart Chain, XRP, and Base, followed by Dogecoin and Optimism.
Other supported networks in the first phase include Solana, Tron, Arbitrum, Avalanche, Polygon, Zcash, and Sui, with individual assets becoming available as security checks are finalized.
Binance co-founder Yi He stated that withdrawal processing was proceeding without significant disruption, though increased demand could temporarily affect transaction speeds. She wrote on X:
“Things are currently running fairly smoothly. If there are many withdrawal requests, congestion cannot be ruled out, after which it will smooth out again.”
He also urged customers to verify withdrawal addresses and ensure their devices and operating environments were secure before transferring funds.
Meanwhile, Binance has updated its proof-of-reserves wallet address list to include newly generated wallets, which will process all subsequent withdrawals. The infrastructure changes followed the multibillion-dollar breach that forced the exchange to temporarily suspend withdrawals while investigators examined its compromised hot-wallet systems.
Binance has maintained that customer funds remain protected and that the company will absorb the financial losses from the attack. The exchange reported it has replenished approximately 95% of the affected assets through corporate resources and market purchases, up from 90% in its previous update.
Balances in Bitcoin, Ethereum, USDT, USDC, BNB, Solana, XRP, USD1, RLUSD, and Zcash are now fully backed, while the remaining unreplenished assets consist primarily of less-liquid tokens.
However, replacing stolen assets does not mean the original funds have been recovered from the attackers. Binance continues working with law enforcement and industry partners to trace and potentially recover those assets.
The extent to which the observed on-chain outflows reflect customers moving assets elsewhere remains uncertain, particularly as Binance transitions withdrawals to newly generated wallets.
The exchange has pledged to publish a detailed post-incident investigation report, while its updated proof-of-reserves disclosures are expected to provide further information about the assets backing customer balances.
Also Read
- STOXX 600 Analysis: Shell, Sartorius Stedim and Verbund Lead as Banking Stocks Retreat
- Analysts Boost Shell Price Targets Following Strong Q3 Results and Share Buyback
- SEC uncovers $130M crypto fraud after removal of falsified filings
- Binance Covers 90% of $6.3 Billion Hack Shortfall as FBI Blames North Korean Group
