Binance customers pull $4.72 billion after record crypto hack

Binance customers have withdrawn a total of $4.72 billion (DH17.3 billion) from the cryptocurrency exchange following a record $6.3 billion cyberattack last week. The company states that withdrawals are stabilising and customer activity is returning to normal. Most of the withdrawn funds were in Tether's USDT stablecoin, according to Reuters.

Binance resumed withdrawals on Sunday after suspending them for over two days following the attack. Binance co-CEO Richard Teng revealed that customer deposits and withdrawals have largely returned to normal during a recent fintech event in Hong Kong. The exchange currently holds 95% of the affected cryptocurrency using its emergency protection fund and other reserves, while the remaining 5% consists of less liquid tokens being replaced through over-the-counter providers.

The UAE regulator is monitoring Binance regarding unauthorized withdrawals. The FBI has attributed the theft to North Korea's TraderTraitor hacking group, a claim that North Korea has rejected. Blockchain analytics firm Elliptic estimated that the attackers still control about $3.28 billion in stolen cryptocurrency, primarily Bitcoin and Ether.

Stablecoin issuers have frozen some of the stolen assets, including over $1.1 billion in USDC. Binance's replenishment of affected assets is separate from efforts to recover the stolen cryptocurrency. Despite the scale of the attack, analysts said the withdrawals did not trigger widespread panic or significant disruption across financial markets.