Binance restores access across nine networks – Can deposits keep pace with exits?
Binance's recovery efforts are gaining momentum as withdrawal services return across multiple networks.
After the $6.3 billion hack, which shook the entire community, Binance has resumed cryptocurrency withdrawals for several major digital assets.
This includes Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], Solana [SOL], Dogecoin [DOGE], Chainlink [LINK], Cardano [ADA], Litecoin [LTC], and Shiba Inu [SHIB].
Binance resumes withdrawals of more assets
According to the exchange’s announcement, withdrawals for these assets reopened at 04:00 UTC on the 3rd of November across nine supported networks.
That said, the exchange has also begun restoring withdrawals for selected assets across additional networks, including Sui, Arbitrum, Optimism, TRON, and Base. However, the process will take place gradually as Binance completes its security checks across different networks and assets.
Remarking on the same, the Binance team noted,
We are prioritizing tokens based on user demand over the past week, restoring each network-asset pair carefully after completing rigorous security checks. Additional assets will be added as they become ready.
Adding more to this, one of CryptQuant’s analysts noted,
Withdrawals are being processed correctly, with no further security issues and today shows a net outflow totaling -16,021 BTC so far.
This coincided with AMBCrypto’s recent report that Binance witnessed significant withdrawal activity after reopening its services on the 1st of November. In fact, within the first two hours, users withdrew approximately $733 million worth of assets. All in all, the exchange has replenished approximately 95% of the affected assets using its own funds.
They further confirmed that BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC are fully backed at a minimum 1:1 ratio.
Although the large outflows raised concerns about customer confidence, continued deposits and gradually declining withdrawal volumes suggested that activity was slowly normalizing.
The comeback is not that easy
Now, while Binance buckles up to resume activity after the hack, the exchange also recorded approximately $3.29 billion in net outflows over the past 24 hours, marking a decline of more than 50% from its earlier intraday peak of nearly $7 billion, according to DeFiLlama data.
The decline suggests that the initial rush to move funds away from Binance may be easing following the reported security breach. Meanwhile, the exchange’s remaining on-chain holdings stood at approximately $127.78 billion.
This comes on the heels of Binance’s latest Proof of Reserves (PoR) report, dated 31st October, which revealed changes in the cryptocurrency holdings maintained by users on the exchange.
The most notable development was a sharp decline in USDT balances, alongside falling Ethereum and BNB holdings. However, Bitcoin holdings recorded a slight increase.
Not a complete full stop by hackers
However, fear still remains, as the Binance hacker has reportedly started mixing stolen cryptocurrency to make the funds harder to trace.
According to blockchain analytics firm Elliptic, the attacker moved 28 BTC through CoinJoin, a privacy tool that combines transactions from multiple users to obscure the origins of funds.
So far, the stolen assets have passed through approximately 12,000 wallets across 11 blockchain networks in more than 40,000 transactions. Lastly, around $3.24 billion remains in theft-linked addresses, primarily in Bitcoin and Ethereum, while approximately $2.85 billion has been frozen.
Final Summary
- Though Binance has begun restoring withdrawals for selected assets across additional networks, the process will take place gradually.
- The exchange recorded approximately $3.29 billion in net outflows over the past 24 hours, marking a decline of more than 50%.
