Massive Net Outflows Follow Resumption of Withdrawals
Binance reported $3.64 billion in net outflows during the first several hours after the exchange reopened its withdrawal services on Sunday, November 1. The exodus of customer funds came in the wake of a record-breaking $6.3 billion hack that struck the platform last week.
According to a post the exchange published on X, it processed $4.65 billion in withdrawal requests against $1.01 billion in deposits between 6:00 a.m. and 3:30 p.m. UTC on November 1. The resulting net outflow equated to roughly 2.1% of Binance's total assets, which stood at $171 billion based on the exchange's most recent proof-of-reserves disclosure dated October 28.
Binance noted that the initial surge in withdrawal activity has since moderated, with volumes trending toward stabilization. Deposit flows, by contrast, have remained comparatively robust, suggesting a portion of the user base is continuing to move funds into the platform.
Phased Restoration Across Networks
The exchange began restoring withdrawal functionality in stages at 6:00 a.m. UTC on Sunday. By 12:36 p.m. UTC, services had been reactivated across all 15 blockchains and the assets included in the first phase. Binance confirmed that testing was still underway for the remaining networks and tokens, meaning full restoration had not yet been completed at the time of its update.
CEO Seeks to Reassure Users
Changpeng Zhao, Binance's founder and former chief executive, took to X to address customers directly in the aftermath of the breach. "98% choose to stay!" he wrote, attempting to counter any perception of a mass exodus. Zhao acknowledged that the bulk of the net outflows concentrated in the first one or two hours after withdrawals were reopened.
In a broader message about customer confidence, Zhao added: "Trust isn't earned by what you say in good times. It's earned by what you do in hard times." The remark underscored the exchange's emphasis on its response actions rather than its public statements.
Absorbing the Loss and Covering Stolen Funds
The FBI has attributed the $6.3 billion theft to a North Korean hacking operation it has designated TraderTraitor. In response to the breach, Binance has committed to absorbing the full financial impact of the stolen assets, stating it will not pass the losses on to its users.
In its latest update, the exchange reported that it had covered approximately 95% of the impacted amount, an improvement from the 90% figure cited in its previous communication. Binance explained that the remaining 5% involves lower-liquidity tokens, which require more time to source in the volumes necessary to fully back user balances.