Binance Reports a Record Breach of About $6.3 Billion
On Thursday, Binance confirmed a security incident with an estimated total impact of roughly $6.3 billion, which would make it the largest theft in crypto history. Early findings point to a compromised laptop belonging to a DevOps engineer, which let an attacker reach an internal service and submit unauthorized withdrawals. The exchange said it found no evidence that wallet private keys were exposed, and it suspended withdrawals until the issue is resolved.
Co-CEO Yi He said Binance will cover all losses, backed by its Secure Asset Fund for Users, which holds around $1 billion in bitcoin. About $3 billion of the affected assets has been frozen, including roughly $2.3 billion in USDT and USDC. Tether said it froze more than $1.57 billion in USDT, while Circle, the US-based issuer of USDC, reported freezing over $800 million. Several blockchain security firms say the tactics resemble those of North Korean state-linked groups, although that attribution comes from analysts and not from an official finding.
Strategy's CFO Steps Down After a Record Quarter
In a Thursday regulatory filing, Strategy disclosed that CFO Andrew Kang will leave on November 5 for personal reasons. The company stated that the decision was not the result of any disagreement over its operations, policies or practices. Kang will remain an adviser through December 31. From January 1, Reza Virasteh, currently executive vice president of operations, will serve as co-principal financial officer alongside CEO Phong Le, who keeps oversight of bitcoin strategy, capital markets, treasury and investor relations.
The departure comes as Strategy reported record quarterly operating income. The company said it has raised about $21 billion in capital so far this year and held 848,517 BTC as of October 25, up 26% since the start of the year. Even so, MSTR shares were down about 6.4% in pre-market trading on Friday.
How the Market Reacted
Bitcoin dropped about 4.8% to below $77,000 as news of the breach spread, while ether fell 5.7% and BNB lost 8%. Leveraged traders took the heaviest hit, with roughly $1.5 billion in crypto positions liquidated during the selloff. The move came on top of earlier weakness, when bitcoin slipped under $80,000 following the Federal Reserve's hawkish hold of rates at 3.75%–4%.
What to Watch Next
Traders will be watching whether Binance resumes withdrawals, how much of the frozen money can be recovered, and whether the attacker's bitcoin, reportedly around $1.4 billion spread across wallets that no issuer can freeze, starts moving through decentralized platforms. At Strategy, attention turns to the leadership transition and to how a weaker bitcoin price affects the company's balance sheet. This article is for informational purposes only and is not investment advice.
