The world's largest cryptocurrency exchange, Binance, witnessed net customer withdrawals of $3.64 billion (approximately ₹35,000 crore) within hours of resuming services on Sunday, November 1, following a massive cyberattack that resulted in the theft of $6.3 billion (approximately ₹60,000 crore) in digital assets.
The withdrawals represent one of the biggest tests of customer confidence for Binance, which temporarily suspended transactions after the October 29 attack. The cyber heist, described by investigators as potentially the largest financial theft in history, has raised fresh concerns about the security of cryptocurrency exchanges worldwide.
According to Binance, customers withdrew $4.65 billion in nine hours on November 1, while deposits stood at $1.01 billion. This resulted in net withdrawals of approximately $3.64 billion.
The exchange said withdrawals surged immediately after services resumed but subsequently declined, indicating that customer activity was gradually stabilising.
The net outflow represented approximately 2.1% of Binance's total assets of $171 billion, according to its October 28 proof-of-reserves figures.
Although the withdrawals were substantial, they accounted for only a relatively small proportion of the assets held by the exchange. Binance has around 33.5 crore registered users globally, making the incident particularly significant for the wider cryptocurrency industry.
Binance has assured customers that they will not bear the financial consequences of the attack. The exchange said it had replaced approximately 95% of the stolen cryptocurrency assets using its corporate treasury, insurance arrangements and emergency reserves.
The remaining 5% consists primarily of less-liquid cryptocurrencies that are difficult to purchase quickly in large quantities. The company has earmarked more than $6.34 billion to address the financial impact of the breach.
Withdrawals involving major cryptocurrencies, including Bitcoin, Ethereum and several stablecoins, have resumed. Other assets and blockchain networks are being restored gradually following security checks.
The US Federal Bureau of Investigation has attributed the cyberattack to TraderTraitor, a North Korea-linked hacking operation associated with the notorious Lazarus Group.
The same network was linked to the February 2025 attack on cryptocurrency exchange Bybit, which resulted in the theft of approximately $1.5 billion.
Following the Binance breach, the FBI identified cryptocurrency wallet addresses allegedly associated with the attackers and urged exchanges and other industry participants to block transactions involving those addresses.
Investigators believe the stolen assets could be moved through multiple cryptocurrency networks and decentralised financial platforms to conceal their origins.
Preliminary findings from Binance suggest that the attack may have begun when an engineer's laptop was compromised, providing hackers with access that enabled unauthorised transactions.
The company is continuing its investigation with cybersecurity specialists and law enforcement agencies.
The incident highlights the risks associated with holding digital assets on centralised cryptocurrency exchanges.
Unlike cryptocurrencies stored in independently controlled digital wallets, assets maintained on exchanges depend heavily on the security infrastructure and operational stability of the platform.
For Indian cryptocurrency investors, the incident serves as a reminder that even globally established exchanges can face sophisticated cyberattacks.
Although Binance has pledged to reimburse affected users, not every cryptocurrency platform may possess sufficient financial reserves to absorb losses of this magnitude.
Investors should therefore pay attention to exchange security, proof-of-reserves disclosures and the risks of keeping substantial holdings on a single platform.
The Binance attack comes amid growing concern over increasingly sophisticated cryptocurrency thefts.
According to blockchain intelligence firm TRM Labs, hackers stole approximately $2.9 billion through nearly 150 cryptocurrency attacks during 2025.
The latest incident has intensified questions about whether existing security systems can protect rapidly expanding digital asset platforms against organised cybercrime.
For Binance, restoring withdrawals is only the beginning. Rebuilding customer confidence and demonstrating that its security systems can withstand future attacks will be the larger challenge.