Bitcoin fell sharply late Thursday into early Friday, dropping below the $77,000 level, after multiple sources reported a major security incident at Binance, the world’s largest cryptocurrency exchange by trading volume.
The sell-off rippled across digital asset markets, with Binance’s native token BNB and other major cryptocurrencies also posting steep losses.
Blockchain analytics firms and on-chain data tracked large unauthorized outflows from Binance-linked hot wallets beginning around 20:24 UTC on October 29. Estimates of the total impact range from roughly $5.9 billion (Chainalysis) to about $6.3 billion, according to Binance’s own statements.
If confirmed at the higher end, the incident would rank as the largest cryptocurrency theft on record, significantly exceeding the previous high of around $1.5 billion from the Bybit exploit in early 2025.
Binance said an initial investigation suggested the breach may have begun with a compromised laptop belonging to a DevOps engineer. That access allegedly allowed an attacker to reach a service container and submit unauthorized withdrawal transactions.
The exchange stated it found no evidence of private key leaks from wallets and emphasized that user funds remain safe.
In response, Binance temporarily suspended all deposits and withdrawals while securing its wallet infrastructure and tracing affected assets. Co-CEO Yi He and other company statements confirmed that Binance will cover all user losses resulting from the incident.
Partners, including stablecoin issuers Tether and Circle, froze substantial sums—reports put the combined frozen amount at roughly $2.5–3 billion or more, with figures continuing to be updated as tracing progressed.
Bitcoin traded as low as the mid-$76,000s in some reports, marking a multi-week low and a roughly 4–5% decline over 24 hours at points during the sell-off. BNB fell about 7–8%, Ethereum declined around 5%, and tokens such as XRP and Solana also posted notable losses.
Crypto liquidations reached approximately $1–1.55 billion in the 24-hour window, with the majority involving long positions.
Market participants attributed the pressure to the Binance news intensifying broader risk-off sentiment. Analysts noted that BNB faced particular exposure given its close ties to the exchange’s ecosystem.
Some privacy-focused assets, such as Monero, moved higher amid the uncertainty.
The episode has drawn attention to ongoing security challenges in centralized exchanges and the role of hot wallets. Binance operates a Secure Asset Fund for Users (SAFU) and has pledged full coverage of losses.
Industry partners and law enforcement are involved in the response, and further technical details are expected once the investigation advances.
As of the latest available updates on October 30, markets remained volatile while Binance worked to restore normal operations and refine the verified impact figures.
The full extent of recoverable assets and any long-term effects on investor confidence will become clearer in the coming days.
