Binance has started allowing cryptocurrency withdrawals again after losing $6.3 billion worth of digital assets in one of the biggest crypto heists so far.
For those catching up, the $6.3 billion theft reportedly took place in around 20 minutes on October 29, following which Binance suspended withdrawals across several networks.
Binance is gradually reopening withdrawals
In what is a phased reopening of its services, Binance is initially allowing withdrawals for 15 cryptocurrencies, including Bitcoin, Ether, Dogecoin, and certain USDC and USDT stablecoins. The exchange says it is prioritizing tokens based on customer demand over the past week. As for the stolen assets, Binance has used its Secure Asset Fund for Users (SAFU), Futures Insurance Fund, and corporate treasury to purchase replacements. The remaining 5% consists of cryptocurrencies that are harder to obtain in large quantities.
André François McKenzie / Unsplash
As reported by Reuters, the reopening saw customers pulling billions of dollars from the exchange, with crypto analytics platform DefiLlama recording more than $3.5 billion in net outflows on Sunday. Binance, however, says the initial rush of withdrawals has started to settle down. The company has also managed to replace around 95% of the stolen cryptocurrency using its own money, although the original assets haven’t necessarily been recovered from the hackers.
Binance also claims that the withdrawals account for a small portion of its total managed assets, while customer deposits have remained significant.
The FBI has identified a North Korean hacking group
The FBI has attributed the attack to TraderTraitor, a North Korean state-sponsored hacking group. Blockchain analysis firms had previously identified the same group as being responsible for the heist. US President Donald Trump, however, said on Saturday that North Korea’s involvement wasn’t certain.
The company has promised to cover the financial losses itself, instead of passing them on to customers. However, with billions already being withdrawn from the platform, it remains to be seen how quickly Binance can regain the confidence of its users.
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