Institutional crypto investors are rushing to withdraw digital assets from centralized exchanges following Thursday’s multibillion-dollar hack of Binance, according to people familiar with the matter.
The withdrawals suggest the fallout is extending beyond the world’s largest crypto exchange, putting the security of assets held on trading platforms back in focus, the people said, who spoke on condition of anonymity as the matter is private.
Investors are looking to rebalance trading books following the hack, the people said.
Binance estimated that about $6.3 billion in assets were stolen in the attack, with roughly $3 billion subsequently frozen. The exchange suspended withdrawals, while co-CEO Yi He said it would cover all losses from the hack.
The amount institutional investors are withdrawing across exchanges, and the destinations of those funds, were not immediately clear.
Centralized exchanges hold customer assets and facilitate trading, making them an important part of the infrastructure used by institutional investors.
The Binance breach highlights the exposure that comes with leaving balances on a trading venue, that a security failure can put assets at risk and interrupt access to funds.
