Binance Withdrawals Top FTX Levels in November, but Crypto Liquidity Defies Panic

Binance withdrawals surged into the billions after a record-breaking $6.3 billion hack, bringing back memories of FTX’s November 2022 collapse. Yet the world’s largest crypto exchange is showing a resilience that could barricade the industry from its darkest chapter.

Binance processed $4.65 billion in withdrawals and $1.01 billion in deposits during the first nine and a half hours after reopening services on November 1, resulting in $3.64 billion in net outflows. According to its October 28 Proof of Reserves data, the exchange held $171 billion in total assets, so the withdrawal wave accounted for just 2.1% of its reported holdings.

This puts the outflows in perspective: despite the initial rush following the $6.3 billion hack, Binance retained assets worth 47 times the net amount withdrawn. The exchange said withdrawals had begun stabilizing, while deposits remained substantial.

The figures initially look alarming, especially against the backdrop of FTX. The failed exchange suffered $6 billion in net withdrawals over 72 hours before suspending customer withdrawals in November 2022.

Binance Withdrawals Test Confidence, but Reserves Hold

“98% choose to stay. Trust isn’t earned by what you say in good times. It’s earned by what you do in hard times.” – Changpeng Zhao, Binance Founder

Binance has previously said that it had set aside more than $6.34 billion to cover the incident, including $5 billion in the affected token assets. It also reported that partners had frozen approximately $3 billion linked to the attack.

So how does this compare to FTX? This current crisis is fundamentally different from FTX’s collapse. FTX’s withdrawal run exposed a liquidity shortfall tied to customer funds and its relationship with Alameda Research. Binance, by contrast, says it will cover the stolen assets rather than pass the losses to users.

Bitcoin (BTC)24h7d30d1yAll time

Bitcoin’s reaction offers one of the clearest signs of crypto’s resilience compared with the FTX collapse. Following the $6.3 billion Binance hack, BTC briefly slipped toward $76,700 but held above the closely watched $75,000 support level before recovering toward $79,000. The contrast with November 2022 is stark. Bitcoin fell nearly 10% on November 8 as FTX’s withdrawal crisis intensified, then plunged another 14.4% on November 9 to close near $15,877, after briefly hitting $15,632.

While Binance’s hack triggered billions in withdrawals and market-wide liquidations, Bitcoin has so far avoided the cascading selloff that followed FTX’s implosion. Its ability to defend $75,000 suggests investors are treating the incident as a major exchange security failure rather than evidence of a systemic liquidity crisis across crypto.

CZ’s $4.3B Settlement Shows Binance Has Survived Major Shocks Before This November Attack

Binance has already faced a major financial and regulatory reckoning. In November 2023, the exchange agreed to pay more than $4 billion to resolve U.S. investigations into anti-money laundering and sanctions violations. Founder Changpeng Zhao also pleaded guilty to failing to maintain an effective anti-money laundering program. He resigned as CEO and paid a separate $50 million fine.

Despite that enormous settlement, Binance continued operating as the world’s largest crypto exchange. The latest hack now presents another test of its financial strength, operational resilience, and ability to maintain customer confidence.

Crypto markets have still felt the shock. Bitcoin and Ethereum fell following the breach, while spot Bitcoin ETFs recorded huge outflows and leveraged positions faced heavy liquidations. However, both major cryptocurrencies partly recovered after hitting lows.

Now, can Binance withdrawals continue to ease? The exchange publishes updated Proof of Reserves data and completes its security review. The comparison with FTX shows the scale of investor concern, but not necessarily the same outcome. Binance has absorbed a major hack, committed to covering customer losses, and resumed withdrawals after billions left the platform.

November has brought back memories of 2022. Binance’s response shows crypto’s largest exchange is determined to keep this crisis from becoming another industry-wide collapse.