Binance Users Withdraw $3.64 Billion After Major Security Breach; Exchange Restores Services

Binance recorded $3.64 billion in net outflows after restoring withdrawals following a major security breach, while the exchange confirmed compensation efforts and a phased cryptocurrency withdrawal recovery.

Binance Records $3.64 Billion Net Outflows After Restoring Withdrawals Following Security Breach

Cryptocurrency exchange Binance witnessed substantial customer withdrawals after resuming services following a major security incident. Users withdrew approximately $3.64 billion (around ₹30,600 crore) during the first nine and a half hours after withdrawal facilities were restored.

The exchange reported gross withdrawals exceeding $4.64 billion (approximately ₹39,000 crore) during this period. These were partly offset by deposits worth around $1.01 billion (₹8,500 crore), resulting in net outflows of $3.64 billion.

Binance Reports Heavy Withdrawals After Services Resume

The temporary suspension of withdrawals followed a major security breach reportedly involving $6.3 billion. Once the exchange restored access, customers began transferring their cryptocurrency holdings to other platforms and personal wallets.

According to Binance, the net outflows accounted for approximately 2.1% of its estimated $171 billion in total assets under management.

The company said withdrawal activity increased sharply immediately after services resumed but gradually started stabilising. It also highlighted that deposit activity remained strong during the recovery period.

Binance assured customers that funds affected by the security incident would be compensated through its internal resources and the Secure Asset Fund for Users (SAFU).

The exchange is continuing to monitor its systems and gradually restore normal operations across trading pairs and supported blockchain networks.

Which Cryptocurrencies Can Binance Users Withdraw?

Binance has introduced a phased withdrawal restoration process covering 15 blockchain networks in its initial recovery phase.

The list of supported assets includes:

• Bitcoin (BTC)

• Ethereum (ETH)

• BNB

• Tron (TRX)

• Solana (SOL)

• XRP

• Zcash (ZEC)

• Dogecoin (DOGE)

• TON

• Polygon (POL)

• Avalanche (AVAX)

• Arbitrum (ARB)

• Base

• Sui (SUI)

• Supported stablecoins, including USDT and USDC

The exchange explained that wallets supporting other cryptocurrencies are still undergoing additional security assessments. These checks include repeated audits and reviews of the platform's security infrastructure.

According to Binance co-founder Yi He, the restoration of remaining assets will depend on several factors, including market capitalisation, the amount of funds locked in the network and the number of affected users.

However, Binance has not provided a confirmed date for restoring withdrawals across all remaining cryptocurrencies.

Why Did Binance Temporarily Suspend Withdrawals?

The withdrawal restrictions were introduced after a significant security incident raised concerns about the safety of the exchange's infrastructure.

Binance temporarily limited access to withdrawal services while investigating the breach, assessing its impact and strengthening security measures.

The company also undertook additional reviews of its withdrawal systems and coordinated with law enforcement agencies and industry partners.

Investigators have been tracking the movement of the stolen cryptocurrency and examining possible ways to identify those responsible for the attack. These efforts also include tracing the affected assets and exploring recovery options.

The temporary suspension was part of the exchange's response to the incident as it worked to secure its systems before gradually reopening withdrawal facilities.

Binance Says 95% of Affected Funds Have Been Covered

Binance has also shared an update on its efforts to replace assets impacted by the security breach. The exchange said it had covered approximately 95% of the affected amount, compared with around 90% in its earlier update.

To arrange the remaining assets, Binance has been making purchases through cryptocurrency markets and over-the-counter transactions using its own resources.

The company explained that the outstanding 5% primarily involves tokens outside the top 10 cryptocurrencies. These assets generally have lower liquidity, making it more difficult to acquire the required quantities quickly.

Binance also confirmed that reserves fully back balances in Bitcoin, Ethereum, USDT, BNB, Solana, USDC, XRP, USD1, RLUSD and ZEC.

The exchange reiterated that it would bear the financial consequences of the stolen funds rather than transfer the losses to its customers.

Binance Focuses on Security and Service Restoration

The latest withdrawal figures highlight the immediate reaction of customers following the temporary suspension of services. Although substantial funds moved out of the platform, Binance says transaction activity is stabilising and its compensation efforts are progressing.

The exchange's next priority is to complete security assessments and restore withdrawals for the remaining cryptocurrencies. Its ability to maintain customer confidence will depend on transparent communication, effective security measures and the successful handling of the incident.

Conclusion

Binance’s recovery efforts mark an important step towards restoring normal operations after the major security breach. Although the exchange has covered approximately 95% of the affected funds, significant customer withdrawals highlight concerns about platform security and investor confidence. The successful restoration of remaining cryptocurrency withdrawals, along with transparent communication and stronger security measures, will be crucial for Binance to rebuild user trust.