Binance details US$3.6 billion in net outflows after cyber theft
It is a relatively soft blow to its overall business in the wake of the largest cyber theft in history.
Binance disclosed a net outflow of US$3.6 billion in cryptoassets following the restoration of customer withdrawals on November 1. This figure represents a relatively minor impact on the exchange's overall business after the largest cyber theft in history, believed to be perpetrated by North Korean hackers. The exchange initially froze withdrawals following the October 29 hack, which resulted in US$6.3 billion being stolen.
Despite the significant loss, Binance vowed to fully reimburse all affected customers. The response to the incident, including its speed and transparency, garnered praise from industry experts. As of October 28, Binance held US$171 billion in assets under management, dwarfing its closest competitor, OKX, with $29 billion. Experts suggest that the platform's size and liquidity make it a critical player in the crypto market, making withdrawal unlikely and potentially temporary.
The incident has raised concerns about the vulnerabilities of cryptocurrencies and their safety. While the market fallout has been relatively contained, with most major cryptocurrencies experiencing less than a 1% change, the severity of the hack has shaken confidence in Binance's cybersecurity measures. The FBI and US Secret Service are investigating the attack, which was attributed to an employee's compromised laptop.
Binance has partially restored withdrawals, initially covering 15 tokens, with the process gradually expanding to include more cryptocurrencies and blockchain networks. The company has so far recovered about 95% of the stolen cryptocurrency, using its corporate treasury and emergency funds.
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