Binance clients pull US$4.7bil after hack as crypto world studies fallout
The exchange says net outflows amounted to around 3% of assets on the platform, a relatively modest figure that analysts suggest customer confidence has largely held up.
Since reopening, Binance's clients have withdrawn approximately $4.72 billion, following hackers stealing around $6.3 billion from the platform in what could be the largest financial heist in history. The FBI attributed the hack to North Korea. After the intrusion, Binance temporarily halted withdrawals for about 48 hours and resumed them on Sunday morning.
Analysts noted that the outflow represented around 3% of assets on the platform, indicating relatively stable customer confidence. Most withdrawals were in Tether's USDT stablecoin. Binance absorbed the financial impact of the stolen funds, drawing US$6 billion from its treasury, insurance fund, and security reserves. The attack heightened concerns about the vulnerability of digital assets to cyber threats and the potential impact on the broader crypto market.
Bitcoin prices recovered, but stablecoin market capitalizations fell, hinting at some investors shifting funds into traditional assets. The FBI identified North Korea-linked group TraderTraitor as responsible for the attack, describing it as highly sophisticated and funding the country's weapons programs.
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