Binance Outflows Reach $4.7 Billion After North Korea Hack

Users can now withdraw their funds from Binance, although a significant amount was moved out on the first day of resumed operations.

Binance experienced net outflows totaling $3.64 billion on November 1, 2026, after temporarily halting withdrawals due to a hot-wallet drain. The exchange reported $4.649 billion in withdrawals against $1.01 billion in deposits between 06:00 UTC and 15:30 UTC. Binance stated these outflows represent 2.1% of its $171 billion in assets under management as of October 28. The company claims to have recovered approximately 95% of the estimated $6.3 billion loss from the hack. Withdrawals were reopened in phases, with 15 networks and assets becoming available in the first phase, and the exchange has added new wallet addresses to its proof-of-reserves list. Binance anticipates releasing an updated proof-of-reserves report and a post-incident report.

The substantial withdrawal activity following the security incident underscores the ongoing fragility of user trust in centralized exchanges, especially when faced with significant security breaches. While Binance managed to cover most of the hack losses and maintain a relatively small net outflow compared to its total assets, the event highlights the critical need for continuous and transparent proof-of-reserves mechanisms. The phased reopening of withdrawals and the ongoing testing of remaining networks suggest a cautious approach by Binance to ensure operational stability and prevent further vulnerabilities.

This event reinforces the market's sensitivity to security events and the potential for rapid capital flight from exchanges perceived as compromised. Investors will likely scrutinize the details of Binance's post-incident report and its updated proof-of-reserves data to gauge the effectiveness of its security measures and financial health. The ability of Binance to stabilize outflows through a combination of deposit activity and its own recovery efforts will be key to rebuilding confidence, while the broader market will observe how other exchanges respond to similar threats.