Binance reopens withdrawals as customers pull out $3.6bn after hack
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Binance is facing heavy withdrawals after a record $6.3bn theft on Thursday, which experts say was probably carried out by North Korea. The incident has unsettled crypto markets, while Binance founder Changpeng Zhao warned that scammers are targeting customers trying to withdraw their money.
After briefly freezing withdrawals, Binance began reopening them in stages on Sunday. By Sunday afternoon it had processed $4.6bn in withdrawals and $1bn in deposits, a net outflow of about $3.6bn, or 2.1% of its $171bn in assets. US Bitcoin exchange-traded funds also saw $643m in net outflows on Friday, and options trading shifted towards protection against further falls.
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In short
- Binance users withdrew a net $3.6bn after the $6.3bn hack.
- The exchange warned that scammers are targeting customers.
- Bitcoin funds and options markets showed signs of caution.
How this story developed
- 36 minutes ago Binance is facing heavy withdrawals after a record $6.3bn theft on Thursday, which experts say was probably carried out by North Korea. The incident has unsettled crypto markets, while Binance founder Changpeng Zhao warned that scammers are targeting customers trying to withdraw their money.
Full account
Binance has begun restoring withdrawals after a $6.3bn (£4.7bn) theft from the cryptocurrency exchange, while customers have withdrawn substantially more than they have deposited. By Sunday afternoon, Binance had processed $4.6bn in withdrawals and $1bn in deposits, leaving a net outflow of about $3.6bn (£2.7bn). That was roughly 2.1% of the $171bn in assets it reported managing. The company confirmed the figures in a proof of reserves snapshot and said withdrawal volumes had eased after an initial surge. A fuller report was expected on Monday.
The exchange suspended withdrawals while it investigated the breach, which took place on Thursday, then announced a phased reopening on Sunday. Its first phase restored access to 15 networks and assets, including some ethereum, USDT and USDC holdings. Withdrawals involving Dogecoin and Avalanche subsequently resumed. Binance said it was continuing to test the remaining networks and assets before restoring access more widely. It also said it had replaced 90% of the stolen amount. Acquiring the balance could take longer because some of the tokens were less liquid, it said. Co-chief executive Richard Teng said the company would cover the remainder and that customers would not bear the loss.
The FBI said on Saturday that North Korea was responsible for the theft and identified actors associated with a group known as TraderTraitor. Its statement followed suspicions raised by private investigators and analysts. The agency said it had observed stolen assets being converted into ethereum and expected further attempts to move the funds. The scale of the theft has prompted descriptions of it as the largest heist on record, although the reports provide no common basis for that comparison. Binance founder Changpeng Zhao also warned customers to watch for scams as false screenshots and claims circulated during the withdrawal disruption.
The breach coincided with a broader turn towards caution in cryptocurrency markets. Nick Forster, chief executive of the crypto platform Derive.xyz, said US spot bitcoin exchange traded funds recorded $643m in net outflows on Friday, their first trading day after the hack. He also reported increased demand for options that protect against a fall in bitcoin’s price. Those figures show how investors positioned themselves after the theft, but do not establish that the hack alone caused every withdrawal or trade. For Binance customers, the immediate question remains when access to all supported assets will return; the company has said it will announce the next phase after further testing.
Where outlets differ
From the full account, which is AI-written from the sources:
Source 1 places greater emphasis on Zhao’s warning about scammers and on bitcoin fund flows and options trading. Source 2 gives more detail about the staged reopening, Binance’s plan to replace stolen assets and the FBI’s attribution of the theft to North Korea.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Reopening withdrawals in stages can be seen as a prudent way to restore access while managing operational and security risks after a major theft. The reported net outflow is a small share of Binance’s stated assets, and customers withdrawing funds may reflect sensible caution rather than evidence that the exchange cannot meet its obligations.
The case against
The scale of withdrawals and the brief freeze may reasonably raise concerns about Binance’s resilience, transparency and customers’ ability to access their funds promptly. Even if the outflow is a modest share of reported assets, uncertainty after a record theft and signs of wider market anxiety could justify users reducing their exposure until confidence returns.
Explained simply
Binance is one of the world’s largest cryptocurrency exchanges, where customers buy, sell and hold digital assets such as bitcoin. Its founder, Changpeng Zhao, is a prominent figure in the industry.
Crypto exchanges hold assets for customers, so confidence in their ability to safeguard funds and process withdrawals matters. A major theft can unsettle markets and prompt customers to move money elsewhere, while withdrawals alone do not show whether an exchange is unable to meet its obligations.
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Originally published by The Guardian as “Crypto ‘scammers on overdrive’ as Binance customers pull billions from accounts after $6.3bn hack – business live”.