Binance hack sparks broad crypto sell-off

A multi‑billion‑dollar hack targeting Binance unleashed a sharp sell‑off across digital asset markets, driving Bitcoin (BTCUSD) below $77,000 and dragging other major tokens into the red. Chainalysis estimated about $5.9 billion was stolen, while Binance described a security incident with an estimated impact of $6.3 billion and said about $3 billion in cryptocurrency assets have been frozen so far.

Bitcoin (BTC), the largest cryptocurrency, dropped as much as 4.5% over 24 hours to trade around $76,664 late on October 29. Ethereum (ETH), the second‑largest token, fell to about $2,190 as selling accelerated following the hack headlines.

BNB, the native token of the Binance ecosystem, absorbed some of the heaviest losses among major assets. BNB lost 7.1% to $698.65.

Despite the broad sell‑off, a few assets advanced. Hyperliquid's HYPE token surged 17% to $93, defying the wider market downturn.

The rapid price declines triggered a wave of liquidations across derivatives markets. Within hours, crypto liquidations surpassed $1 billion, largely in long positions. Over a 24‑hour period, total liquidations climbed to about $1.55 billion, with roughly $1.34 billion attributed to long positions and more than 246,000 traders liquidated.

One of the largest single forced closures involved an approximately $11 million Bitcoin long position on a Binance BTCUSDT contract.

Substantial transfers moved from Binance‑labeled hot wallets on Ethereum, involving large amounts of ETH, USDT, USDC and other tokens sent to newly created addresses.

Stablecoin issuers moved quickly to contain some of the flows. Tether froze roughly $971 million in USDT tied to the suspected wallets, while Circle froze about $823 million in USDC, bringing total stablecoin freezes in the episode to roughly $1.8 billion.

Binance stated that user funds are completely safe, said its security teams are urgently reviewing the incident, and pledged to cover all user losses resulting from the hack. The exchange indicated that it expects to begin resuming withdrawal services within 48 hours and has cautioned users to rely on official channels for updates while the investigation continues.

Industry figures emphasized coordinated efforts to manage the situation, with large exchanges blocking transfers to compromised wallets and highlighting the need for collaboration in response to major security incidents. While analysts observed that selling pressure was significant, some characterized the broader market reaction as relatively contained given the scale of the event, noting that sentiment will depend on how quickly confidence in exchange security and customer fund protection is restored.