Key takeaways
- Binance records $3.64 billion in net customer withdrawals
- Exchange replaces 95% of assets stolen during hack
- Billions in outflows test confidence despite restored reserves
Binance recorded approximately $3.64 billion in net outflows within nine and a half hours of reopening cryptocurrency withdrawals on November 1, as customers moved billions of dollars off the exchange following its record $6.3 billion security breach.
According to Reuters' November 1 report, Binance processed $4.65 billion in withdrawals and received $1.01 billion in deposits between 06:00 and 15:30 UTC. The exchange said the net outflow represented approximately 2.1% of its $171 billion in reported assets.
The withdrawals came despite Binance replacing approximately 95% of the stolen cryptocurrency, raising questions about whether restoring customer balances is enough to restore confidence after the largest reported cryptocurrency exchange hack.
Binance Customers Withdraw $4.65 Billion in Nine Hours
Binance began restoring withdrawals in phases on Sunday, November 1, prioritizing Bitcoin, Ethereum and major stablecoins before expanding access to additional cryptocurrencies.
The reopening followed the exchange's October 29 security breach, when hackers reportedly drained approximately $6.3 billion from hot wallets across multiple networks.
In its official recovery update, Binance confirmed that it had replaced 95% of affected assets, up from the 90% recovery milestone announced on October 31.
However, customers moved funds rapidly once withdrawal services resumed.
Binance said withdrawal activity initially spiked before gradually declining, while deposit volumes remained substantial. Independent DefiLlama tracking showed approximately $4.05 billion in net outflows over the preceding 24 hours at one November 1 observation.
The figures measure different periods and should not be treated as directly interchangeable.
Binance Restores 95% of Stolen Assets, but Recovery Continues
Binance has repeatedly stated that customers will not absorb losses resulting from the breach.
The exchange is financing replacement purchases through corporate resources and its Secure Asset Fund for Users, known as SAFU, while working with blockchain companies to recover stolen funds.
The original attack reportedly began with approximately $296 million in XRP before expanding into Bitcoin, Ethereum and other cryptocurrencies.
Investigators subsequently traced substantial attacker-controlled Ethereum holdings, raising concerns about potential future movements of stolen assets.
Binance previously reported that approximately $3 billion in affected cryptocurrency had been frozen through cooperation with blockchain partners.
Ripple also intervened by freezing stolen RLUSD, illustrating how centralized stablecoin issuers can restrict certain stolen assets even after unauthorized blockchain transfers.
Importantly, replacing stolen tokens is not the same as recovering them. Binance has been using its own resources to replenish affected reserves while investigators continue tracing the original funds.
The remaining 5% consists largely of less-liquid cryptocurrencies that Binance said would take longer to replace.
What Do Binance's $3.64 Billion Outflows Mean?
The withdrawal surge represents an important test of Binance's liquidity and customer confidence.
Although $3.64 billion is substantial, it represents a relatively small share of the exchange's reported assets. Binance maintains that withdrawal activity is stabilizing and that customer balances remain fully backed for major cryptocurrencies.
Still, the breach has already affected the broader market.
Bitcoin previously fell below $77,000 as cryptocurrency liquidations reached approximately $1.53 billion, while BNB lost 8% during the initial selloff.
