Binance Users Withdraw $3.6 Billion After $630 Billion Crypto Hack - Thairath English
Binance, the world's largest cryptocurrency exchange, revealed a net outflow of over $3.6 billion, or about 123 billion baht, representing roughly 2.1% of all assets under management, after announcing the first phase of withdrawal reopening following the largest hack in history valued at $6.3 billion (approximately 210 billion baht). The FBI issued a statement attributing the attack to the hacker group TraderTraitor, linked to the North Korean government. Β
Binance, the world's largest cryptocurrency trading platform by daily volume, began gradually allowing users to withdraw digital assets again on Sunday, 1 Nov 2020, after suspending the service due to a cyberattack that resulted in the theft of over $6 billion (about 200 billion baht) in digital assets from its system.
Binance disclosed that between 06:00 and 15:30 UTC on 1 Nov (13:00β22:30 Thai time), it processed approximately $4.65 billion in customer withdrawals and received around $1.01 billion in deposits, resulting in a net outflow of $3.64 billion (about 123 billion baht), equating to roughly 2.1% of the total assets it manages.
The company stated that withdrawals initially surged rapidly before stabilizing, while deposit volumes remained high. This phased withdrawal process prioritized user demand and covered various cryptocurrencies, including Bitcoin, Ethereum, and certain stablecoins.
Binance confirmed it will be responsible for all losses from the attack, using company funds to purchase tokens to compensate for the stolen assets. The company reported it has secured about 95% of the value lost, approximately $6 billion, out of total damages estimated between $6.3 and $6.4 billion. The remaining 5% consists of less liquid assets that may take longer to recover fully.
Binance stated it has allocated over $6.34 billion of its own capital to cover the incident's losses and affirmed it will not pass any financial burden onto its users.
The U.S. Federal Bureau of Investigation (FBI) announced that North Korea is responsible for this digital asset theft, identifying the government-backed hacker group "TraderTraitor" as the perpetrators.
The FBI said authorities detected the attackers converting stolen assets into Ethereum and anticipate money laundering through decentralized finance (DeFi) platforms and instant cryptocurrency exchange services. They urged the private sector to halt transactions linked to the group's digital wallets.
TraderTraitor is also accused of stealing $1.5 billion from the Bybit platform in February last year and is believed to be connected to the Lazarus group, which has been implicated in multiple major cyberattacks.
However, former U.S. President Donald Trump stated uncertainty over North Korea's involvement, telling reporters on Saturday that the U.S. is investigating and will engage with the Pyongyang government if evidence confirms their role.
This attack severely impacted cryptocurrency markets, with Bitcoin prices dropping nearly 5%, Ethereum nearly 6%, and Binance Coin (BNB) plummeting almost 10% after the news broke on Friday.
Although digital asset prices partially recovered over the weekend, the incident has raised concerns over investor confidence, especially among institutional investors holding funds and assets on cryptocurrency exchanges.
Reports indicate Binance has about 335 million registered users worldwide and manages approximately $171 billion in assets as of 28 October. Data from research firm TRM Labs shows nearly 150 cryptocurrency thefts occurred in the past year, totaling around $2.9 billion, highlighting increasing security risks in the global digital asset market.
Binance is currently investigating the incident with law enforcement and blockchain experts to identify system vulnerabilities, track stolen assets, and prevent similar events in the future.
