After a $6.3 billion hack attributed to North Korean hackers, Binance reopened withdrawals on November 1, leading to $4.65 billion in withdrawals and $1.01 billion in deposits within a single day. This resulted in net outflows of 2.1% of Binance's total assets, which were reported at $171 billion as of October 28.
Although the initial outflow was substantial, Binance noted that withdrawal volumes were stabilizing and deposits remained strong. Founder Changpeng Zhao reassured users by stating that 98% chose to stay with the platform, emphasizing the importance of trust during challenging times.
Binance has committed to absorbing the financial losses from the hack, having covered approximately 95% of the stolen funds, with the remaining 5% consisting of less liquid tokens. This incident underscores the vulnerabilities in the cryptocurrency sector and the critical need for exchanges to maintain robust security measures to protect user assets