Binance Faces $3.64 Billion Net Outflows After Reopening Withdrawals
Binance faced $4.65 billion in withdrawals within nine hours of reopening after a major security breach, resulting in $3.64 billion in net outflows while covering 95% of stolen assets.
Binance has reopened its withdrawal gates following a major security breach, facing an immediate wave of capital outflows. Within just nine and a half hours, clients withdrew approximately $4.65 billion from the platform, while new deposits reached about $1.01 billion, resulting in a net outflow of roughly $3.64 billion.
Despite the massive figures, the withdrawal represents a relatively small fraction of the exchange's total reserves. According to Binance, the platform held roughly $171 billion in assets prior to the breach, meaning the initial outflows accounted for about 2.1% of total holdings. While external research firms such as DefiLlama reported higher net outflows reaching up to $5.8 billion over a 24-hour window, the discrepancy largely stems from different measurement methodologies tracking blockchain address movements rather than direct client withdrawals.
Gradual Restoration and Asset Coverage
Binance has resumed operations progressively, restoring withdrawal capabilities across 15 networks including Bitcoin, Ethereum, Solana, BNB, and XRP, while other assets await further security checks. The exchange has also shifted withdrawal operations to newly established hot wallets.
Simultaneously, Binance announced it has covered approximately 95% of the stolen assets using corporate funds and insurance reserves, committing to absorb the full financial impact without passing losses to users. The exchange plans to publish an updated cryptographic proof of reserves by November 3 to reassure clients.
Market Recovery and Broader Impact
Following the initial panic, the broader crypto market showed signs of recovery. Bitcoin rebounded above $78,000 after hitting a six-week low, and Ethereum recovered from a two-month low. However, the incident triggered wider market stress, including $643 million in outflows from US spot Bitcoin ETFs and over $1.3 billion in liquidated leveraged positions.
