Binance Suffers Record $6.3 Billion Crypto Hack as Bitcoin and Ethereum Prices Slide
Bitcoin and ether plunged on October 30 after cryptocurrency exchange Binance disclosed a security breach involving approximately $6.3 billion in digital assets. The incident, potentially the largest cryptocurrency theft in history, triggered widespread selling across the crypto market.
The sell-off intensified after prediction market Polymarket disclosed a separate security incident. Meanwhile, Standard Chartered warned that cryptocurrency prices could face additional declines before establishing a stable recovery.
Bitcoin and Ethereum Prices Fall Sharply
Bitcoin dropped approximately 3% to $76,469, touching its lowest level in six weeks. Ether also declined more than 3%, trading near $2,186 as investors reacted to growing security concerns.
The market turmoil extended beyond major cryptocurrencies. Shares of Coinbase Global fell 4.8%, while bitcoin-focused Strategy declined nearly 6% in extended U.S. trading.
According to Reuters, the Binance incident raised concerns about liquidity, exchange security, and investor confidence. Traders also faced uncertainty over whether the disruption could trigger additional selling pressure.
Binance Freezes $3 Billion After Security Breach
Binance confirmed that the estimated impact of the security incident reached approximately $6.3 billion. The exchange worked with blockchain partners to freeze around $3 billion in affected assets.
Preliminary findings suggest attackers compromised a DevOps engineer’s laptop and gained access to a service container. They subsequently initiated unauthorized withdrawals, although Binance found no evidence that wallet private keys had leaked.
The exchange temporarily suspended deposits and withdrawals while conducting security checks. Binance also pledged to reimburse affected customers using its Secure Asset Fund for Users and company resources.
Separately, Polymarket temporarily halted international trading following a breach involving a third-party service provider. The company subsequently restored operations and promised to compensate affected users.
Standard Chartered Expects Further Crypto Market Weakness
Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, cautioned that the cryptocurrency market may experience further declines.
Kendrick indicated that prices might struggle to establish a reliable bottom until Binance restores access to affected assets and provides additional information about the attack.
Analysts also warned that disruptions at major centralized exchanges could restrict liquidity and increase market volatility.
However, a swift resolution could help stabilize sentiment. Investors will closely monitor Binance’s recovery efforts, the status of frozen assets, and developments in the ongoing investigation.
For now, the $6.3 billion Binance hack has renewed concerns about cryptocurrency custody and exchange security. The market’s recovery may depend heavily on how quickly Binance restores confidence and normal operations.
