Binance Sees Massive XRP Outflows Amidst Whale Activity Surge

XRP Whale Outflows Surge on Binance Amid Security Breach

XRP experienced a significant net outflow from Binance on October 29, reaching -226 million units. This figure represents a stark increase, being 2.72 times higher than the -83 million units recorded in September 2022.

Analysis by CryptoQuant indicated that 283 million XRP were transferred out of the exchange in large transactions on the day of the security breach. TRM Labs tracked 233.46 million XRP from five Binance wallets to an address controlled by an attacker. Elliptic independently reported approximately 233 million XRP in related transfers. Following the suspension of withdrawals, large transfers exceeding 1 million XRP plummeted to 14.7 million on October 30, a decrease of 94.8%.

When Binance began a phased restoration of withdrawals, including XRP, on November 1, large-transfer outflows surged to 80 million XRP, a 5.44-fold increase compared to October 30. Whale netflow remained negative, approximately -50 million XRP. CryptoQuant suggested that moving the cryptocurrency off the exchange could reduce the immediate supply available for sale, potentially easing near-term selling pressure.

The Binance security breach resulted in an estimated $6.3 billion in stolen digital assets, marking it as the largest cryptocurrency heist in history. Initial investigations suggested a compromised employee laptop as a possible vector. The FBI later confirmed North Korea’s involvement, linking the attack to the state-sponsored cybercrime group “TraderTraitor.”

U.S. President Donald Trump, who had pledged to investigate the incident, also stated he would engage with North Korea if its involvement was confirmed. Binance has announced it has covered approximately 95% of the stolen assets, though recovering the remaining amount may take longer. The exchange has consistently assured customers that it will absorb all losses stemming from the attack.

The massive hack on Binance had an anticipated impact on XRP, which saw its price drop from above $1.3 to $1.2 within hours. However, the decline was less severe than those observed during previous exchange failures. XRP managed to recover to around $1.25 by press time.

On the institutional front, October concluded positively for spot XRP Exchange-Traded Funds (ETFs), which collectively attracted $18.83 million. The final two weeks of the month were particularly strong, with inflows of $4.25 million and $4.32 million, respectively, offsetting modest outflows earlier in the month.