$3.64 bn pulled from world's largest crypto exchange Binance after $6.3 bn heist

Over the weekend, customers withdrew $3.64 billion from Binance following a $6.3 billion hack, which prompted an initial wave of withdrawals as users sought to safeguard their assets. Binance stated that this outflow represented around 2.1% of its total assets, which stood at $171 billion as of October 28. Despite the initial surge, deposit volumes remained substantial.

Ari Redbord, the global head of policy at blockchain intelligence firm TRM Labs, noted that the withdrawals were more likely a precautionary measure than a large-scale capital flight. The pace of withdrawals is currently under scrutiny, serving as an early indicator of whether users maintain trust in the platform following what is considered one of the largest cryptocurrency thefts on record.

Binance has attempted to allay fears by revealing that it has replaced approximately 95% of the stolen assets, spending about $6 billion to purchase replacement tokens. The remaining 5% consists of less liquid cryptocurrencies, which may take longer to acquire in sufficient quantities. The exchange gradually resumed withdrawals on Sunday, initially permitting transactions involving 15 cryptocurrencies including Bitcoin, Ether, XRP, Dogecoin, and stablecoins such as USDT and USDC. Binance prioritized tokens based on user demand over the past week.

However, Binance disputed figures reported by DefiLlama, which stated that withdrawals amounted to $5.81 billion, suggesting these figures did not account for certain deposits into Binance's new hot wallet. A Binance spokesperson confirmed that their last update, as shared on X, was the most accurate.

Even as the broader cryptocurrency market showed signs of recovery, with Bitcoin trading above $78,000 and Ether nearing $2,287, the combined market capitalization of the two largest stablecoins, USDT and USDC, fell by around $1.2 billion since Friday. Binance has pledged to bear the financial burden of the breach, setting aside around $6.34 billion from its corporate treasury, Futures Insurance Fund, and Secure Asset Fund for Users (SAFU).