Binance sees $3.6bn net outflow as proof of reserves nears
In short
- After withdrawals resumed on Sunday, Binance recorded a net outflow of about $3.6 billion: $4.6 billion withdrawn against $1 billion deposited.
- The exchange says it has covered 95% of the roughly $6.3 billion stolen; the full proof of reserves is expected by Tuesday, 3 November (UTC).
- Bitcoin is at $78,620 (+1.1% in 24 hours, −1.1% over a week), about 3.4% below its 28 October close.
Binance has reopened withdrawals, but customers have already taken out about $3.6 billion more than they put in. At 7:00 a.m. Sofia time Bitcoin is at $78,620, and the exchange has not yet published its proof of reserves.
What happened
Hackers stole about $6.3 billion from Binance hot wallets on 29–30 October, the largest hack on record according to CoinDesk. Withdrawals reopened in phases on Sunday, 1 November, with a first window of 06:00–09:00 UTC: Bitcoin first, then Ether, USDT, USDC, BNB, XRP and other networks. Analytics firms link the attack to the North Korean group TraderTraitor; about $3 billion is frozen, mostly in USDT and USDC.
According to the blog Feld Thoughts, by Sunday afternoon Binance had processed $4.6 billion in withdrawals and $1 billion in deposits: a net outflow of about $3.6 billion, or about 2.1% of the exchange’s assets (estimates of assets differ: $171 billion according to the blog, $145 billion according to CNBC). CNBC reports a net outflow of $3.64 billion. Binance says flows are stabilising.
Coverage of the losses is 95%, up from 80% on Friday and 90% on Saturday; the remaining 5% is tokens outside the top ten. The money comes from part of the SAFU fund, the futures insurance fund and the corporate treasury. The zero-knowledge proof of reserves needs 40–50 hours of computation and is expected by 3 November (UTC); it is meant to let each customer check that their balance is included without seeing anyone else’s.
What it means for you
The math: 0.1 BTC is worth about $7,862 at $78,620 per Bitcoin. A week ago the same amount was worth about $7,950, so the −1.1% move is about $88. A net outflow of about 2.1% of assets means that, on the same proportion, $10,000 of customer assets would be $210 – an illustration of the proportion, not a forecast for any account.
See also: live crypto prices and how Binance replaced 90% of the stolen funds.
Bottom line
Binance has covered 95% of the losses and reopened withdrawals, but customers have taken out a net $3.6 billion. The proof of reserves is expected by 3 November (UTC), and Bitcoin is at $78,620.
Sources: CoinDesk · Feld Thoughts · CNBC
For information only. This is not investment advice.
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