Binance Reopens to $3.64 in Net Outflows. '98% Choose to Stay', Says Its Founder (cnbc.com) 22
Binance now says it's replenished 90% of assets stolen last week in a $6.3 billion security breach, its customers still "rushed to move funds off the platform" when it reopened Sunday, CNBC reports, and Binance "said it recorded $3.64 billion in net outflows after reopening withdrawals on Sunday."
The exchange processed $4.65 billion in withdrawals and $1.01 billion in deposits between 6 a.m. and 3:30 p.m. UTC on Nov. 1, Binance said in a post on X. The resulting net outflows represented 2.1% of Binance's $171 billion in total assets, based on its latest available proof-of-reserves data as of Oct. 28. Binance said withdrawal volumes had declined and were stabilizing following an initial spike, while deposit volumes remained substantial.
The exchange began restoring withdrawals in phases at 6 a.m. UTC on Sunday, with services resuming across all 15 networks and assets included in the initial phase by 12:36 p.m. UTC. It said testing was continuing for the remaining networks and assets.
Binance founder and former CEO Changpeng Zhao sought to reassure users following the breach, writing on X that "98% choose to stay!" He said most of the net outflows occurred within the first couple of hours after withdrawals resumed.
The exchange began restoring withdrawals in phases at 6 a.m. UTC on Sunday, with services resuming across all 15 networks and assets included in the initial phase by 12:36 p.m. UTC. It said testing was continuing for the remaining networks and assets.
Binance founder and former CEO Changpeng Zhao sought to reassure users following the breach, writing on X that "98% choose to stay!" He said most of the net outflows occurred within the first couple of hours after withdrawals resumed.
"Nothing to See Here. All is well!", says Founder (Score:2)
Re:"Nothing to See Here. All is well!", says Found (Score:4, Insightful)
There is no end to the attacks both AI and QC are going to bring to crypto. No doubt they'll cover what they can, but it's just a matter of time. Imagine the next few attacks. Convert your crypto to something else... soon before your peers realize the game is up.
It's not about crypto itself, it's about who is holding your wallet and its keys, you or a third party.
Re:"Nothing to See Here. All is well!", says Found (Score:4, Interesting)
Where is the money going to come from if Binance are done again before they get to rebuild that cushion, or keep getting hit with lots of somewhat smaller heists in a death by a thousand cuts type scenario? What do you think is going to happen to market confidence, and therefore token values, if another of the major exchanges defaults/rug pulls as a result of one of these heists, which is probably just a matter of time now? The reality is that there's a whole bunch of people using crypto who are either too lazy and/or not technically adept enough to sort out their own wallet and keys, so they're going to keep using exchanges like they are banks. That makes the whole system vulnerable to token value crashes because it doesn't matter where and how securely your crypto is stored if the value of the tokens tank; everyone with a HODL position gets to be a bagholder in that scenario.
Re: (Score:2)
The reality is that there's a whole bunch of people using crypto who are either too lazy and/or not technically adept enough to sort out their own wallet and keys, so they're going to keep using exchanges like they are banks.
That is absolutely true. I'm arguing that there is not an inherent flaw in the design of crypto, but rather in the notion that its utility extends to all computer/smartphone users. In reality it will be limited to an audience with some technical skills (following instructions to configure and use software) and has a secondary "clean" computer/smartphone they can exclusively dedicate to crypto.
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Yes, there are many good Open Source wallets, Electrum is one of them (they offer a wallet for LTC as well which is basically superior to BTC in every way).
Print out (or otherwise secure) your text passphrase, that way if you lose all of your data, you can input it into a fresh install of Electrum and regain access to your wallet that way.
The only reason to ever store funds in somebody else's wallet (such as Binances') is if they are giving you a return on your money, via interest or who knows what, and you
Re: (Score:2)
The only reason to ever store funds in somebody else's wallet (such as Binances') is if they are giving you a return on your money, via interest or who knows what, and you are comfortable with that risk/reward ratio.
I'd argue that exchanges are for nothing more than briefly converting between government currency and crypto, a very short window of vulnerability.
While "ponzi" is often erroneously used with respect to crypto in general, the crypto model is really the "greater fool" theory, how would an exchange pay interest? A bank can make money off of deposits by loaning money and collecting interest. What is the source of the exchange's income? Higher transaction fees to pay interest? Crypto based loans, what collat
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The same can be said about banks holding your real money. Or more accurately, a database entry tracking your balance, because it's not like they have a physical pile of cash in a vault with your name on it.
The issue is regulation. The bank has to have enough insurance to cover any losses, and has to reimburse you. In many countries there is a limit on the maximum liability.
Re:"Nothing to See Here.", says known felon corp. (Score:2)
It's not about crypto itself, it's about who is holding your wallet and its keys, you or a third party.
And if your real currency is insured. Otherwise, try to cash out NOW!
And all crypto-currencies not Bitcoin are even worse. All those gains on the screen are likely false. Because you absolutely can not "trust the code" or any offshore unregulated exchange.
Re: (Score:2)
Sitting in a system designed from the ground up for money laundering.
No. A system designed to not be controllable by governments. And the fact that every single transaction is recorded in the blockchain, things are not as untracable as many believe. There is anonymity, until those coins touch the real world, for example a retail purchase delivered to a person.
Money laundering certainly exists, but the goal was actually a currency not controlled by any government.
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A currency not controlled by a government but based on government controlled currency ?
It is not based on government controlled currency. Some people will merely trade one for the other. Others trade traditional goods and services for crypto.
Seems like a house of cards in a wind tunnel.
It is, but for other reasons.
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Sitting in a system designed from the ground up for money laundering.
No. A system designed to not be controllable by governments.
No. A system designed to not be controllable by governments who are trying to stop money laundering.
It's sort of like the US Civil War wasn't about abolishing slavery, it was about States' rights to be free from the interference of the Federal government trying to abolish slavery. Motivation for the motivation matters.
And the fact that every single transaction is recorded in the blockchain, things are not as untracable as many believe. There is anonymity, until those coins touch the real world, for example a retail purchase delivered to a person.
Except when they hit a mixer service first, which probably happens a lot more than these coins being used for a retail purchase delivered to a person.
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No. A system designed to not be controllable by governments who are trying to stop money laundering.
That's obviously stupid though. Any government can make it illegal and target everyone using it.
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No. A system designed to not be controllable by governments who are trying to stop money laundering. It's sort of like the US Civil War wasn't about abolishing slavery, it was about States' rights to be free from the interference of the Federal government trying to abolish slavery. Motivation for the motivation matters.
Wow, someone else read the declaration of causes of seceding states. A primary source written and passed by the various US state legislatures that were about to go confederate. Not only did they put in writing the goal was to defend slavery in the existing states, but they wrote it was essential to expand it into new states.
Now show me where the founding documents of bitcoin they say one of the goals is money laundering.
You equate a stated primary goal with a side effect.
And the fact that every single transaction is recorded in the blockchain, things are not as untracable as many believe. There is anonymity, until those coins touch the real world, for example a retail purchase delivered to a person.
Except when they hit a mixer service first, which probably happens a lot more than these coins being used for a retail purchase delivered to a person.
Now show me where the founding
Just 'first shareholder'. (Score:4, Interesting)
$3.64? (Score:3)
in related news, Binance executives now unable to buy a coffee at Starbucks.
Re: (Score:2)
We only talk in billions now. Anything less is chump change.
Slight error in headline (Score:2)
US$3.64 is not a dreadfully large amount of net outflows; which must be good news for them.
Re: (Score:2)
It might not be good news: it might just be that that was all that was left.
Or Binance just made up "that they are solvent." (Score:2)
It might not be good news: it might just be that that was all that was left.
The only way Binance depositors can know is to cash out and see if they receive real currency.
Everything else is just a number in a video game.
Red Flags of Investment Fraud Checklist [investor.gov]