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CryptoMedium•3 November 2026•
5 min read

Bank of Korea Surveys 31 Institutions on Fallout From Major Platform Halt After Hack

Key Facts

1The Bank of Korea requested responses from 18 banks and 13 brokerages by November 4.
2Chainalysis estimated unauthorized transfers at about $6.4 billion and said about $2.8 billion had been frozen as of November 3.
3Binance customers had withdrawn a net $4.72 billion since the platform reopened through November 2, equivalent to about 3% of its assets, according to the company’s estimate.
4Binance said it had reimbursed about 98% of affected tokens with company funds.

The Bank of Korea asked 18 banks and 13 brokerages to assess their ability to handle a scenario in which the country’s largest cryptocurrency platform halts operations after a major hack, setting November 4 as the deadline for responses, according to a November 3 report by CoinDesk. The survey is part of a broader review of financial institutions’ digital asset activities, after the bank began gathering information on October 23, before the Binance hack on October 29. The survey is therefore not an investigation launched by the bank in response to the hack, although the incident has given the scenario under review a direct link to current events. The review focuses on channels through which pressure in crypto markets could spread to the traditional financial sector. The Bank of Korea has not said that financial stability risks have materialized.

The questionnaire goes beyond testing a single platform shutdown, asking institutions about their ability to withstand a sharp fall in cryptocurrency prices followed by a prolonged slump in trading. It also examines the possibility that another financial institution could incur large crypto-related losses, placing a market downturn and institutional exposure risks within one review. The bank is asking institutions to describe their dedicated crypto teams, budgets and business plans. This also covers their investments in crypto companies at home and abroad. The questions give the bank a picture of the scale and diversity of financial involvement, alongside a test of the impact a potential shock could have on existing business.

A Bank of Korea official said current business reports and information institutions receive from the Financial Supervisory Service do not provide enough detail about their cryptocurrency activities. This data gap explains why the bank is seeking direct responses from the institutions covered by the survey instead of relying solely on available reports. The official added that the bank does not believe financial stability risks linked to these activities have materialized so far. That defines the bank’s current assessment as it examines hypothetical scenarios involving a platform shutdown and losses at a financial institution. Reviewing possible sources of stress does not mean the bank has announced a disruption to the financial system.

Some South Korean financial institutions already have operational links with the digital asset market. Under customer-protection rules introduced in 2024, platforms must keep customers’ cash deposits at banks and separate them from their own funds. The rules provide for those deposits to be returned directly to customers if a platform goes bankrupt or loses its registration. In October, Jeonbuk Bank began offering bitcoin-backed loans to companies, with the collateral held by a registered crypto asset service provider. These arrangements illustrate practical aspects of the relationship between banks, platforms and digital assets that the Bank of Korea is examining in its survey.

The survey came as the Binance hack dominated developments in cryptocurrency markets. Chainalysis estimated unauthorized transfers at about $6.4 billion on October 29 and said about $2.8 billion had been frozen as of 11:30 a.m. Eastern Time on November 3. The company attributed the hack to North Korea’s TraderTraitor group, citing its observation that stolen funds were mixed with funds from the earlier Bybit hack, which it said had been attributed to North Korean actors. Binance has not confirmed the attackers’ identity, saying it is working with law enforcement to establish it. The platform also said it had reimbursed about 98% of affected tokens with company funds and would bring in independent cybersecurity experts to review the incident.

Market moves and withdrawals from the platform showed the fallout from the hack in the days that followed. On the evening of October 29, bitcoin fell 3.2% to below $79,000, according to the Associated Press. On October 30, bitcoin hit a six-week low of $76,368, while ether fell more than 3% to a two-month low of $2,178, before the market stabilized, Reuters reported. By November 2, Binance customers had withdrawn a net $4.72 billion since the platform reopened; the company estimated the outflows at about 3% of its assets and said withdrawals had begun to stabilize after an initial surge. For comparison, Binance recorded net outflows of about $6 billion over 72 hours after the collapse of FTX in 2022.

The survey does not currently entail penalties or new rules, according to the report, as the Bank of Korea plans to use the responses as internal reference data. November 4 is the next immediate milestone, when the deadline set by the bank for the 31 institutions expires. The responses will give the bank details on crypto teams, budgets, business plans and investments, as well as institutions’ estimates of the stress scenarios in the questionnaire. The bank has not announced regulatory action tied to the survey’s findings. The report also did not specify a date for any subsequent decision after the responses are collected.