- South Korean crypto trading surged 45.4% to $2.077B following Binance’s $6.3B hack.
- Upbit’s hourly USDT trading volume jumped 27-fold as investors sought price stability.
- Binance recorded $3.64B in net outflows as security concerns spread across exchanges.
South Korean crypto traders are shifting funds into Tether (USDT) following Binance’s $6.3 billion hack, as concerns over further crypto price declines drive demand for dollar-backed stablecoins.
Trading activity across the country’s five largest exchanges rose 45.4% over two days. The rise indicates that investors are seeking protection from market volatility while keeping funds available for future purchases.
The shift became visible on Upbit, where USDT trading volume surged roughly 27-fold within an hour of the first hacking reports.
Why Korean Traders Are Turning to USDT
According to CoinGecko data, the combined trading volume across South Korea’s five largest exchanges reached $2.077 billion on October 31. That represented a 45.4% increase from the $1.428 billion recorded before the incident.
Upbit accounted for the largest increase, adding approximately $293 million in turnover. Meanwhile, Coinone recorded the strongest percentage growth at 142.5%, supported by fee-waiver promotions. However, USDT trading better indicated changing investor behavior.
On October 30, Upbit’s hourly USDT turnover jumped from 630 million won at 5 a.m. to 17.1 billion won at 6 a.m. Its share of daily trading briefly exceeded 7%, making USDT the exchange’s second-most-traded asset.
Demand also pushed USDT’s local price from a 0.04% discount against overseas markets to a 1.16% premium. Tiger Research analyst Ahn Kwang-ho explained that investors may have converted their holdings into USDT to limit exposure to further declines.
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Binance Withdrawals Raise Questions About Exchange Security
Beyond falling prices, concerns about exchange security may also explain the increased activity. After Binance reopened withdrawals, the exchange recorded $4.649 billion in withdrawals against $1.010 billion in deposits over nine and a half hours.
That produced net outflows of approximately $3.640 billion, equivalent to 2.1% of its previously reported assets. Meanwhile, South Korean authorities strengthened their response after the FBI attributed the theft to North Korean hackers.
Chainalysis identified alleged laundering activity involving transfers across blockchain networks and attempts to convert Solana into Bitcoin. The Financial Services Commission also called for an emergency meeting with domestic exchanges to review security measures.
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Related: Kim Yo Jong Rejects US Claims Linking North Korea to $6.3B Binance Hack
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