Binance Reopens Withdrawals After $6.3 Billion Hack

Overview

• Hackers moved roughly $6.3 billion from Binance wallets in a fast operation that began on Thursday, Oct. 29, forcing the exchange to suspend withdrawals while it investigated.
• Binance has resumed withdrawals in phases, says it has recovered or reserved about $6 billion and will use company funds and its SAFU reserve to reimburse affected customers.
• The FBI and multiple blockchain firms attribute the theft to TraderTraitor, a North Korea–linked unit, a claim Pyongyang has publicly denied.
• Stablecoin issuers and industry partners have frozen or blocked large tranches tied to the theft—Tether and Circle reported nearly $1.6 billion and over $800 million frozen respectively—and authorities warn attackers are converting assets to Ethereum and using DeFi to launder funds.
• Customer withdrawals since the reopening have been large, with about $4.7 billion in net outflows, and a separate security incident at Brazil’s Mercado Bitcoin involving tens of millions highlights wider exchange custody and security concerns.