Binance reopens withdrawals on 15 networks, sees $3.64 billion net outflow in 9.5 hours

Binance reopened withdrawals on 15 networks, including bitcoin, ether and USDT, on Nov. 1, lifting the freeze it imposed after its Oct. 30 hack, and saw a net outflow of about $3.64 billion in the first nine and a half hours. In its "Recovery Update #4" notice, the exchange said phase one would restart in sequence from 3 p.m. KST on Nov. 1, and all 15 networks were open by 9:36 p.m. KST the same day.

Binance's hot wallets, the internet-connected wallets used to process withdrawals, were breached around 5:05 a.m. KST on Oct. 30, and about $6.3 billion worth of assets was drained. Binance suspended withdrawals right after. Deposits and trading stayed open throughout.

Bitcoin first at 3 p.m., all 15 networks by 9:36 p.m.

Binance laid out phase one as follows (all times KST).

The phase-one networks are Bitcoin, Ethereum, BNB Smart Chain (BSC), Tron, Solana, XRP, Zcash, Dogecoin, TON, Polygon, Avalanche C-Chain, Arbitrum, Base, Optimism and Sui. Binance said it prioritized them based on user demand over the past week. Assets that can be withdrawn on these networks include BTC, ETH, USDT, USDC, BNB, TRX, SOL, XRP, ZEC, DOGE, POL, AVAX, ARB, SUI and GRAM on TON.

Withdrawals for other assets remain suspended. As of 7:30 a.m. KST on Nov. 2, Binance's network status data showed withdrawals open for 15 coins, while roughly 970 other coins on its withdrawal list remained suspended. USDT withdrawals on Polygon and Avalanche C-Chain, listed in phase one, were also not open at that time. Binance said it "continues testing rigorously the remaining networks and assets" and will share details of the next phase as soon as it can.

$4.65 billion out, $1.01 billion in

On its official X account, Binance said it processed $4.649 billion in withdrawals and $1.01 billion in deposits between 3 p.m. KST on Nov. 1 and 12:30 a.m. KST on Nov. 2, for a net outflow of about $3.64 billion. That is 2.1% of its $171 billion in assets under management, based on proof-of-reserves data as of Oct. 28. Binance said that "after an initial spike, withdrawal volumes have declined and are stabilising as expected, while deposit volumes have remained substantial."

"Rest assured that market conditions are stable."

Binance official X account

Binance said processing may be delayed while traffic is heavy, and that if a withdrawal on a phase-one network fails, users can try again after a short while.

New proof of reserves due Nov. 2; 95% of losses covered

Binance said it took a new proof-of-reserves snapshot as of 00:00 UTC on Oct. 31 and expects to publish the results, after zero-knowledge proof computation, on its PoR website on Nov. 2. The report lets users check for themselves whether their balances are backed at least 1:1 by exchange assets. Binance also said it will publish a post-incident report once the investigation is complete.

The share of losses covered rose to 95% as of the "Update #4" notice, up 5 percentage points from 90% in "Update #3" on Oct. 31. Shortfalls in 10 assets — BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC — have been fully covered. The remaining 5% of uncovered losses relates to tokens outside those 10, which are less liquid and take longer to source at the required scale, Binance said. It repeated its pledge that "Binance will absorb the financial impact of the stolen funds, not our users."

Korean prices steady, kimchi premium at 0.3%

South Korean exchange Upbit's notice, posted on the morning of Oct. 30, urging caution on withdrawals to Binance had not been lifted as of 7:30 a.m. KST on Nov. 2. In that notice, Upbit said it may restrict withdrawals to Binance if necessary.

At 7:30 a.m. KST on Nov. 2, bitcoin traded at $77,724, ether at $2,258 and BNB at $706 on Binance. On Upbit, bitcoin traded at 104,023,000 won and ether at 3,022,000 won. The kimchi premium (the gap between prices on Korean exchanges and global markets) for bitcoin between Upbit and Binance was about 0.3%. The funding rate on bitcoin perpetual futures was 0.01%, a normal level.