The return of withdrawal services at Binance has exposed the scale of concern among cryptocurrency investors following a security breach that cost the exchange billions of dollars in digital assets.

Within hours of reopening its withdrawal services on Sunday, November 1, 2026, the platform processed withdrawals worth $4.65 billion (approximately Ksh599 billion). New deposits during the same period amounted to $1.01 billion (Ksh130 billion), leaving the exchange with net outflows of $3.64 billion, equivalent to approximately Ksh469 billion.

The figures show how quickly customers moved to secure their holdings after the incident, despite assurances from the company that their money would be protected.

Binance, which is the world’s largest cryptocurrency exchange by trading volume, said the withdrawals represented approximately 2.1% of its total assets under management. Its latest proof-of-reserves figures, dated October 28, placed those assets at approximately $171 billion (Ksh22 trillion).

The company said withdrawal activity had slowed after an initial rush, while deposits remained substantial. This suggested that although some customers were leaving, others were still willing to keep their funds on the platform.

The withdrawals followed a major security breach on October 29, in which hackers stole approximately $6.3 billion in digital assets from Binance’s internet-connected wallets.

The attack forced the exchange to temporarily suspend withdrawals as it investigated the incident and strengthened its security systems. Deposits remained available, but customers could not freely move their cryptocurrency out of the affected services.

The Federal Bureau of Investigation later attributed the attack to North Korea, identifying the hacking operation as TraderTraitor. Investigators said the attackers had started converting the stolen cryptocurrency into Ethereum, raising concerns that the funds could be moved through decentralised finance platforms and instant exchange services to make recovery more difficult.

Binance moves to cover stolen funds

One of the biggest concerns following the breach was whether customers would lose their money or face permanent restrictions on accessing their cryptocurrency.

Binance sought to address these fears by committing to absorb the financial losses rather than passing them on to customers.

The exchange said it had replenished approximately 95% of the stolen assets by Sunday, improving from the 90% reported in its previous update.

It explained that the remaining 5% consisted largely of less-liquid cryptocurrencies that were harder to purchase in the required quantities. The company said it was continuing to source the outstanding assets through market purchases and other channels.

Binance also said it had prepared approximately $6.34 billion to cover the financial impact of the incident. Its recovery efforts involved corporate funds, its Secure Asset Fund for Users and cooperation with other cryptocurrency businesses.

The company and its partners had also worked to freeze approximately $3 billion in assets connected to the attack, although freezing cryptocurrency does not necessarily mean that all the stolen funds have been recovered.

Why the withdrawals matter

The Ksh469 billion net outflow presents Binance with a challenge beyond replacing stolen cryptocurrency.

For a digital asset exchange, customer confidence is an important part of its business. Investors need to believe that they can deposit, trade and withdraw their holdings without facing unexpected restrictions.

A major security breach can weaken that confidence, even when a company has sufficient reserves to cover customer balances.

The withdrawals also highlight the difference between holding cryptocurrency on an exchange and keeping it in a private wallet. Customers who leave their assets on an exchange depend on the platform’s security systems and ability to process transactions.

However, moving funds away from Binance does not automatically mean customers have stopped using cryptocurrency. Some may simply be transferring their holdings to personal wallets or competing exchanges.

Binance said it was restoring services in phases, beginning with 15 cryptocurrency assets and networks, while continuing checks on other services.

The exchange’s next challenge will be demonstrating that its security systems can prevent another incident of similar magnitude. It has promised a more detailed account of the breach after investigations are completed.

For now, the large withdrawals provide an early indication of the financial and reputational consequences of the attack. Binance may have replaced most of the stolen assets, but restoring customer confidence will require more than assurances and a return to normal trading.