Binance has begun allowing cryptocurrency withdrawals again after losing $6.3 billion worth of digital assets in one of the largest crypto heists to date.
For those keeping up with the news, the theft of $6.3 billion reportedly took place in about 20 minutes on October 29th, after which Binance stopped withdrawals across multiple networks.
Binance is gradually resuming withdrawals
As part of a phased reopening of its services, Binance is initially allowing withdrawals for 15 cryptocurrencies, including Bitcoin, Ether, Dogecoin and certain USDC and USDT stablecoins. The exchange says it prioritizes tokens based on customer demand over the past week. As for the stolen assets, Binance has used its Secure Asset Fund for Users (SAFU), its Futures Insurance Fund and the company treasury to purchase replacements. The remaining 5% consists of cryptocurrencies, which are harder to obtain in large quantities.
As reported by ReutersAs it reopened, customers withdrew billions of dollars from the exchange, with crypto analytics platform DefiLlama recording net outflows of more than $3.5 billion on Sunday. However, Binance says the initial rush of withdrawals has subsided. The company has also managed to replace around 95% of the stolen cryptocurrency with its own money, although the original assets could not necessarily be recovered by the hackers.
Binance also claims that withdrawals represent only a small portion of total assets under management, while customer deposits remain significant.
The FBI has identified a North Korean hacking group
The The FBI has attributed the attack to TraderTraitora North Korean state-sponsored hacker group. Blockchain analysis firms had previously identified the same group as responsible for the heist. However, US President Donald Trump said on Saturday that North Korean involvement was not certain.
The company has promised to cover the financial losses itself rather than passing them on to customers. However, with billions already being withdrawn from the platform, it remains to be seen how quickly Binance can regain the trust of its users.
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