Binance Processes $4.65 Billion in Withdrawals as CZ Says 98% of Funds Remain
Binance processed $4.65 billion in cryptocurrency withdrawals after reopening services on November 1, following a record $6.3 billion security breach. Despite the substantial withdrawals, founder Changpeng Zhao (CZ) emphasized that net outflows represented just 2.1% of the exchange’s total assets.
The exchange also recorded $1.01 billion in deposits during the first nine and a half hours of resumed withdrawals. This reduced net outflows to approximately $3.64 billion, suggesting that significant customer funds remained on the platform.
Binance Reports Limited Net Outflows
Binance began restoring withdrawals at 06:00 UTC on Sunday, November 1, following a temporary suspension triggered by the October 29 cyberattack. By 12:36 UTC, the exchange had restored withdrawal services across all 15 networks and assets included in its initial recovery phase.
According to Binance, the $3.64 billion net outflow represented approximately 2.1% of its $171 billion in total assets. The calculation relied on the company’s latest available proof-of-reserves data, dated October 28.
Furthermore, Binance reported that withdrawal activity declined after an initial surge. Deposit volumes remained substantial, providing some reassurance as the exchange worked to restore normal operations.
CZ Says 98% Chose to Stay
Changpeng Zhao highlighted the relatively limited asset outflows in a November 1 social media statement. He noted that most withdrawals occurred during the first few hours after services resumed.
“98% choose to stay!” Zhao wrote, emphasizing customer confidence despite the security incident.
However, the 98% figure reflects the proportion of assets remaining rather than a verified percentage of individual users. The distinction matters because large institutional accounts can significantly influence total exchange balances.
Zhao also stressed that customer trust depends on how companies respond during difficult periods. His comments came as Binance faced increased scrutiny over its security infrastructure and recovery efforts.
Recovery Efforts Continue After Record Hack
The withdrawal reopening followed a cyberattack that resulted in approximately $6.3 billion in stolen cryptocurrency. The FBI attributed the breach to TraderTraitor, a hacking operation linked to North Korea.
Binance has committed to absorbing the financial impact rather than transferring losses to customers. The exchange said it had covered approximately 95% of the affected assets through its recovery efforts.
Meanwhile, Binance plans to publish updated proof-of-reserves information on November 2. The report could provide additional insight into its financial position following the attack.
Although withdrawal activity has stabilized, the exchange continues testing additional networks before restoring full access. Its ability to maintain liquidity and strengthen security will remain central to rebuilding customer confidence.
