Binance logs $4.54B in net outflows after withdrawal resumption
Security & Exploits ·
Users pulled billions from the exchange within 12 hours of withdrawals reopening following a $6.3B security incident.
Binance saw $4.54B in net withdrawals in the 12 hours after it resumed processing user withdrawals, following a security incident previously disclosed at $6.3B. The outflows represent funds users moved off the exchange immediately once withdrawal functionality was restored, suggesting a rapid response from account holders rather than a gradual drawdown.
The scale of the movement is reflected in the exchange's own reserve data. Binance's October 31 proof-of-reserves showed user USDT holdings fell 7.95%, according to wublockchain.xyz. The same disclosure showed BTC holdings rose 0.52%, while ETH declined 3.80% and BNB dropped 0.93%, indicating the withdrawal pressure was not evenly distributed across assets but concentrated most heavily in stablecoin balances.
Separately, enforcement activity tied to the underlying incident has continued. Gate.io froze $250,000 in funds connected to a Binance hacker, with the freeze covering two accounts that received the suspected hack proceeds over a 12-hour window. That action points to funds from the $6.3B incident moving through other venues as recipients attempted to disperse or launder proceeds, prompting at least one other exchange to intervene.
Taken together, the net outflow figure, the reserve composition shift, and the cross-exchange freeze describe a single sequence: a security incident large enough to be measured in billions, a subsequent pause and resumption of withdrawals, and an immediate, concentrated user response once funds became accessible again. The 7.95% drop in USDT holdings specifically suggests stablecoin balances were the primary vehicle users chose for moving funds off the platform.
Not yet known is whether the $4.54B outflow has slowed, stabilized, or continued beyond the initial 12-hour window, and whether further reserve disclosures will show continued declines in USDT or other assets. It also remains unclear how much of the $6.3B incident total has been traced, frozen, or recovered beyond the $250,000 identified at Gate.io, and whether additional exchanges will report similar freezes tied to the same proceeds.