Binance Hack: Investors Lose Confidence as $3bn is Withdrawn

Customers of Binance withdrew more than US$3.6bn after the platform reopened, according to the company’s statement. 

Binance suffered a hack resulting in a record theft of US$6.4bn earlier in the month. It worked with partners and local authorities to reduce damage and loss, freezing US$3bn in assets. 

The Federal Bureau of Investigation (FBI) has since come out with an announcement advising that the Democratic People’s Republic of Korea (DPRK) was responsible for the attack. 

Kim Jo-Yong, sister of Supreme Leader of DPRK Kim Jong Un, a high-level government official, condemned the accusation in a statement. 

“The US has made a trite provocation of linking it with the Democratic People's Republic of Korea again,” says Kim Yo-Jong, the director of North Korea's General Affairs Department, as reported by the BBC. 

A return to normal? 

After the theft occurred on Thursday 29 October, happening in roughly 20 minutes, Binance moved quickly to ensure minimum disruption to its customers. 

After confirming the suspected source it mobilised US$6.24bn in funds to cover the missing assets and froze withdrawals and transactions. 

Transactions resumed shortly on 30 October, and withdrawals resumed on 1 November 2026. 

Shortly following the resumption of normal operations, it processed US$4.65bn in withdrawals and US$1.01bn in deposits in nine and a half hours. 

It has since noted that deposits are starting to exceed withdrawals as the company embraces a return to normalcy. 

International tensions 

The FBI has stated that North Korean group TraderTraitor, an elite hacking group, was responsible for the Binance attack. 

In collaboration with its partners at the USSS and IRS-CI, the FBI stated that it “observed TraderTraitor actors converting stolen assets primarily into Ether (ETH).”

It also suspects that the assets will be further laundered by converting them, using DeFi and instant swap devices. 

An official from DPRK responded, denying involvement. Speaking directly, Kim Yo-Jong, Director of the General Affairs Department, also criticised the US for its accusations against the DPRK regarding the cyber affair, according to the BBC. 

She says: “It is a grave political provocation against the DPRK that the US misleads the international public opinion as if all the cyber crimes in different parts of the world are our deeds”. 

The Binance attack is another apparent crypto hack for TraderTraitor. In 2025, the FBI announced that TraderTraitor was responsible for a US$1.5bn hack of crypto assets from crypto exchange platform Bybit.

Key Binance partners

Franklin Templeton: The global investment platform collaborated with Binance to join together efforts centered on designing digital asset frameworks and services structured to serve diverse investor bases.

Circle: Binance solidified ties with Circle through a strategic five-year agreement and a minority equity investment to broaden the use of USDC globally. Circle acted quickly with Binance to freeze assets following news of the hack. 

Ripple: While Binance and Ripple Labs operate independently without an overarching joint venture, they collaborate routinely on commercial asset listings, cross-chain support and ecosystem initiatives.