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Investors pull billions in funds from Binance after record $6.3bn hack
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- DeepHorus
Binance faced a net outflow of about $3.6bn after a record $6.3bn hack, the exchange’s proof-of-reserves snapshot showed. The platform processed $4.6bn in withdrawals and $1bn in deposits by Sunday afternoon. The outflow equaled 2.1% of Binance’s $171bn in total assets under management.
The theft occurred on Thursday and has been called the biggest heist in history. Binance initially froze withdrawals while investigating the breach. On Sunday it began a phased reopening, restoring access for 15 networks and assets including ethereum, USDT and USDC.
Later on Sunday, Dogecoin and Avalanche trading resumed on their own platforms. Binance said withdrawal volumes had declined after an initial spike and were stabilizing as expected. Deposit volumes remained substantial, the company added.
The FBI confirmed that TraderTraitor, a North Korea-affiliated group linked to Lazarus, was behind the hack. Investigators said the group was converting stolen assets into ethereum and could launder them through decentralized finance and instant swap services. Binance has set aside about $6.34bn of company funds to cover losses.
Richard Teng, Binance’s co-chief executive, said the breach was a complex attack involving a compromised laptop and malware that deleted evidence. He said users would not bear the financial impact and Binance was committed to covering the remaining 10%. The exchange had replenished 90% of the stolen amount, with less-liquid tokens expected to take longer.
The hack rattled crypto markets, with bitcoin falling nearly 5%, ethereum nearly 6%, and BNB nearly 10%. Binance said it used part of its $1bn secure asset fund for users, its futures insurance fund and corporate treasury to rebuy tokens. The company promised a full proof-of-reserves report on Monday as it tested remaining networks and assets.
