Binance Recovers $3.4B in Assets Post-Hack

Binance Sees $3.4 Billion Asset Inflow Post-Hack as Withdrawals Resume

Binance, the world’s largest cryptocurrency exchange, has seen its tracked assets increase by $3.423 billion in just two days following the resumption of withdrawals after a significant hack on October 29. The surge comes as the exchange works to recover from substantial outflows experienced in the wake of the security breach.

According to figures compiled by crypto commentator Tuan Nguyen, Binance held tracked assets valued at $128.87 billion on November 2. This figure came after a period of intense outflows, with more than $6.14 billion leaving the exchange within a 24-hour span. During this time, competitors such as OKX and Bybit experienced inflows of $450.1 million and $121.8 million, respectively, bringing their total asset values to just over $29 billion and nearly $15 billion.

Nguyen highlighted the sheer scale of Binance’s operations, noting that the 24-hour outflow alone exceeded the total assets held by exchanges like Gate, Bitget, Gemini, Bitstamp, and MEXC combined. “Imagine this kind of pressure hitting another exchange. Things could have turned out much worse,” Nguyen commented.

By November 4, Binance’s tracked assets had climbed to $132.29 billion, marking a $3.4 billion, or 2.6%, increase from two days prior. This brought its balance to more than four times that of its closest competitor, OKX.

While other major exchanges saw smaller absolute changes, Bitget’s assets grew from $5.898 billion to $6.146 billion, and Robinhood’s increased from $14.10 billion to $14.55 billion. These represented significant percentage gains of 4.2% and 3.18%, respectively.

Nguyen speculated that the recent asset jump might be attributed to users returning funds to the exchange. He suggested that many individuals may have moved their holdings to personal wallets during the withdrawal suspension and are now transferring them back as services have been restored. Binance co-founder Changpeng Zhao appeared to echo this sentiment, responding to Nguyen’s post with the concise remark, “Users vote with their money.”

Binance initially suspended withdrawals after an incident where suspected North Korean operatives, identified as TraderTraitor, allegedly stole $6.3 billion from the exchange. Withdrawal services were gradually reopened starting November 1, with the initial phase covering 15 blockchain networks. However, North Korea has denied involvement in the hack, characterizing the accusations as a political provocation.

By its own estimates, Binance reported that assets under its management had fallen to approximately $157 billion by Monday, down from $171 billion on November 1. The exchange attributed this decline to the hack itself, customer withdrawals, and price fluctuations in the aftermath of the attack.

The exchange’s share of the spot trading market also dipped to a three-month low of 42%. Data from Kaiko indicates that OKX emerged as a primary beneficiary of this decline, increasing its market share to around 14%.