Binance resumes withdrawals after $6.3 billion hack

Binance announced that phase one of its withdrawal services has opened following a record hack. The exchange previously froze all deposits and withdrawals after hackers stole $6.3 billion worth of crypto assets. The FBI blamed the attack on North Korean operatives, specifically identifying a group known as TraderTraitor as responsible. Binance stated that it has now covered 95% of the stolen assets and committed to bearing the financial impact without passing losses to users.

The exchange plans to roll out withdrawal services in phases based on user demand data from the past week. Binance stated that the first batch of opened networks in phase one is the Bitcoin network. However, as of Sunday morning, Bitcoin withdrawals were listed as partially suspended. The company warned users to expect temporary delays or longer processing times due to traffic volume and congestion during the phased rollout. Withdrawals are being resumed in phases depending on the specific network and asset type.

Between 6am and 3:30pm Coordinated Universal Time on Sunday, Binance processed $4.6 billion in withdrawals. During the same period, the platform received $1.0 billion in deposits. This resulted in a net outflow of $3.6 billion during the initial withdrawal period. Binance reported replenishing 90% of stolen assets on Saturday before announcing early Sunday that it would begin allowing withdrawals in a phased process. The exchange reopened withdrawals for 15 blockchain networks after the theft.

Binance expects continued congestion and longer processing times as it works through the phased rollout. The company is monitoring user demand to determine the next steps in the restoration of full service.