Binance Hit With $3.64 Billion Of Customer Withdrawals

Binance experienced $3.64 billion U.S. of customer withdrawals less than 24 hours after allowing redemptions to resume on its cryptocurrency trading platform. 

The world’s largest crypto exchange reopened withdrawals on Nov. 1 following a massive $6.3 billion U.S. theft days earlier. 

Binance had temporarily paused withdrawals from its exchange for several days while it assessed the damage from the hack of its trading platform. 

The company allowed investors to resume withdrawals on Nov. 1 and saw them immediately pull $3.64 billion U.S. from the exchange. 

North Korean hackers are being blamed for the theft, which has shaken confidence in Binance and the security of cryptocurrencies that are stored in digital wallets and on central exchanges. 

Institutional investors such as hedge funds and pensions have been particularly aggressive in pulling money from Binance and other crypto investments.

On social media, Binance said it processed $4.65 billion U.S. in withdrawals and $1.01 billion U.S. in deposits between 6 a.m. and 3:30 p.m. on Nov. 1. 

The resulting net outflows represented 2.1% of Binance’s $171 billion U.S. of total assets. The company said later in the day that withdrawal volumes had declined and were stabilizing.

Binance founder and former CEO Changpeng Zhao (CZ) sought to reassure users following the hack, writing on social media Nov. 1 that “98% choose to stay!”

The crypto exchange has promised to cover all losses associated with the hack and make investors whole again. 

Binance is a privately held company and its stock does not trade on a public exchange. 

Bitcoin (CRYPTO: $BTC) is trading at $77,500 U.S. on Nov. 2.