Binance, one of the world's largest cryptocurrency exchanges, has witnessed significant capital movements following the reopening of withdrawals after a record-breaking security breach. On October 29, the exchange suffered an attack that resulted in approximately $6.3 billion in stolen assets. After a 45-hour suspension, withdrawals were gradually restored on November 1, triggering a wave of outflows.
According to blockchain data provider GreyBTC, more than $5 billion moved out of Binance-associated wallets within 24 hours of the resumption. This figure represents roughly 3% of the $171 billion in assets the exchange reported before the incident. However, analysts caution that such tracking may include internal wallet transfers, meaning not all of the $6 billion represents customer withdrawals.
During the first nine and a half hours after reopening, Binance processed $4.649 billion in withdrawals against $1.01 billion in deposits, resulting in net outflows of approximately $3.64 billion. Despite the heavy activity, the exchange stated that withdrawal demand had begun to stabilize. Binance also reported replenishing about 95% of the affected assets as of November 1, with the remainder involving less liquid cryptocurrencies that may take longer to replace.
The breach and subsequent outflows have raised concerns about exchange security and customer confidence. Competing platforms have seen increased inflows, with OKX recording about $450 million and Bybit around $134 million in net inflows, according to DefiLlama data. While these movements suggest traders are repositioning assets, it is unclear how much originated directly from Binance.
Meanwhile, blockchain investigators have traced the stolen funds. On-chain analyst SomaXBT reported that North Korean hackers laundered approximately $242 million through the Tron network within two days. The attackers had stolen around $628 million in Tron-based assets, but stablecoin issuer Tether froze approximately $378.7 million in USDT, limiting further movement.
Investigators estimate that about $194 million of the laundered amount moved off Tron via bridges and swapping services, while $26 million remained on the network and $22 million was attributed to transaction costs and slippage. Several decentralized protocols processed the stolen assets, including Relay ($48 million), THORChain ($44 million), Chainflip ($32.1 million), and Symbiosis ($16 million). Bitget Wallet also handled $41.7 million, though the final destination remains unclear.
The FBI has attributed the attack to North Korea's TraderTraitor hacking group and urged decentralized exchanges and infrastructure providers to block transactions linked to the stolen assets. The agency identified hundreds of cryptocurrency addresses associated with the breach. This incident highlights the challenges decentralized platforms face in preventing sophisticated money laundering across multiple blockchains.
The developments have broader implications for the cryptocurrency market, as security breaches can undermine trust and lead to increased regulatory scrutiny. Investors are closely monitoring how exchanges and protocols respond to such threats, and whether measures like Tether's freeze can effectively mitigate losses.
This article is for informational purposes only and does not constitute financial advice.
