🚨 Binance Hack and Market Panic
1. 💥 Binance Suspends Deposits and Withdrawals
In response to reports of a potential attack, the exchange froze transactions on several networks. Representatives stated that they had “not confirmed any impact on user funds,” but were investigating.
2. 💰 More than $2.5 billion** frozen
Binance froze assets worth around $2.54 billion, and that figure could rise. Tether and Circle also froze $1.5 billion and **$800 million in stablecoins, respectively.
3. 🐋 Hacker drains $2.5 billion from hot wallet
According to Blockaid, the attacker used the EIP-7702 function to gain control of Binance’s wallet 14. They withdrew 167,464 ETH (~$388 million) and $1.6 billion in USDT to a new address.
4. 📉 Bitcoin plunges below $77,000**
BTC fell to **$76,418–76,861 (a six-week low), losing more than 4.5–5.8% in 24 hours. The decline accelerated after CZ said it “looks like a hack.”
5. 📉 Ethereum and altcoins hit harder
ETH fell 6.46% to $2,205. LINK plunged 9.18%, BNB fell 6.55%, XRP 6.29%, and SOL 5.31%.
6. 💥 $628 million liquidated in one hour**
The sharp decline triggered a cascade of forced closures totaling **$628 million in an hour. Liquidations exceeded $1 billion over 24 hours.
7. 🏦 Nasdaq falls 1.38%
Pressure on the crypto market intensified after tech stocks fell: Alphabet lost 12% on weak earnings, dragging down the Nasdaq index.
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🐋 Large transactions and flows
8. 🐋 Whale receives 1,900 BTC from Galaxy Digital
Despite the panic, 9 new wallets received 1,900 BTC (~$148 million) from Galaxy Digital over 4 hours—a sign of buying the dip.
9. 🐋 Hacker sells off stolen altcoins
The attacker is already converting the stolen assets into ETH. Their wallets still hold 217.5 million ENA ($39.5 million), 7.58 trillion PEPE ($34.4 million), 2.58 million LINK ($28 million), 128,034 AAVE ($15.9 million), and other tokens.
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📊 Analysis and sentiment
10. ⚠️ SAFU won’t cover everything
Binance’s insurance fund (SAFU) is estimated at around $1 billion**, while the losses could reach **$2.5–6.3 billion. CZ said the exchange would cover all losses, but the full extent of the damage is still being assessed.
11. 📅 Key risk: expiration of $11 billion in options**
The incident occurred ahead of the expiration of **$11 billion in options and a week before the US midterm elections, where a Democratic victory could lead to tighter regulation of the crypto industry.
12. 🔍 The market awaits official confirmation
Binance has neither confirmed nor denied the hack so far. The market’s next move depends on whether the full extent of the damage is disclosed and how quickly the exchange resumes withdrawals.
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📌 Summary: The market has weathered one of the toughest days of the year. The suspected $2.5 billion Binance hack sparked panic, sent BTC below $77K, and triggered a cascade of liquidations. Tether and Circle froze $2.3 billion, and SAFU may not cover all the losses. The key question is whether Binance will confirm the scale of the losses and when withdrawals will resume.
