Binance restores US dollar withdrawals after major security breach

Binance has reactivated US dollar withdrawals following a significant security breach allegedly traced back to North Korea. The incident resulted in the loss of $6.3 billion from the platform, with customers withdrawing $3.64 billion, equating to 2.1% of total assets, as services resumed. Binance compensated for 95% of the stolen assets.

Withdrawal activity has started to stabilize, while deposits have remained stable, following what analysts have described as potentially the biggest financial heist in history. Cryptocurrency markets experienced substantial volatility; Bitcoin plummeted to a six-week low before rebounding to over $78,000, and Ether fell to a two-month low before rising to $2,287.

Binance, a digital asset exchange, enables users to buy, sell, and trade various cryptocurrencies and boasts 335 million registered users globally. As of October 28, the platform reported $171 billion in assets under management. The Binance breach adds to a series of recent cryptocurrency heists, with TRM Labs researchers estimating that attackers stole $2.9 billion worth of digital assets last year in approximately 150 incidents.

The market value of stablecoins has declined since Friday, with the combined market capitalization of the two largest stablecoins, USDT and USDC, dropping by around $1.2 billion since Friday.