Binance, one of the world’s largest cryptocurrency exchanges, reported a major security incident on October 29, 2026, when its hot wallets were compromised, resulting in the theft of approximately $6.3 billion. The exchange stated it had secured more than $6.34 billion through its SAFU fund and corporate treasury to cover the stolen assets.
Timeline of the Binance hack and market response
On October 29, Binance acknowledged the breach and put the estimated casualty at $6.3 billion. The following day, it confirmed that customer funds would be covered in full and announced that $3 billion had already been frozen on-chain by various partners, according to data provider Bitquery.
Withdrawals were suspended immediately after the incident but resumed on November 1. In the first nine and a half hours after transactions restarted, Binance recorded $4.65 billion in withdrawals and $1.01 billion in deposits, leading to a net outflow of around $3.64 billion. By November 2, Reuters reported a total net withdrawal of $4.72 billion, with most outflows occurring in Tether’s USDT stablecoin.
Tom Lee, chairman of BitMine, a digital asset investment firm, compared the market’s reaction to this event with the Bybit theft of February 2025, which saw Ethereum fall 8% on the day of the disclosure and 20% within a week. He noted that Ethereum’s price dropped by only 4% after the Binance incident and described the market’s performance as “very constructive.”
BitMine, headquartered in the US, is known for its large holdings in major cryptocurrencies such as Ethereum.
Mini dictionary: BitMine is a cryptocurrency investment firm specializing in large-scale digital asset management and market analysis.
Lee observed that the ability of Binance to swiftly secure and commit substantial funds to cover customer losses, coupled with a limited decline in Ethereum’s price, illustrated a degree of resilience in the crypto market despite the magnitude of the hack.
Stablecoin supply and market sentiment trend lower
Despite Lee’s outlook, several data points suggested caution among investors. According to blockchain analyst CW8900, the total market cap of stablecoins declined from $270.3 billion at the start of October to $263.4 billion after the hack, a drop of $6.9 billion. Separate research by Sumcap indicated the total stablecoin supply dropped by $3.1 billion since October 28, settling at $298.5 billion. This downward shift in stablecoin supply began before the Binance breach and continued afterward, reflecting ongoing market hesitancy.
During the same period, the Crypto Fear & Greed Index, an indicator of market sentiment, fell to 26 on November 3, placing it in “Fear” territory. This was a sharp decline from previous readings of 37 the day before the hack, 48 a week prior, and 65 one month earlier.
The following table, based on CoinGecko data at 11:13 UTC on November 3, shows the performance of three major assets around the event:
| Asset | Price | 24-hour change | 7-day change |
|---|---|---|---|
| Bitcoin (BTC) | $77,122 | -0.96% | -3.34% |
| Ethereum (ETH) | $2,269.39 | -0.69% | -1.79% |
| BNB | $698.13 | -0.90% | -5.24% |
BeInCrypto reported that BitMine’s holdings after its recent purchase rose to 6,060,506 ETH, representing 4.9% of the total Ethereum supply. Analysts said this illustrates the firm’s large stake in the market rather than broader investor confidence.
The broad decline in stablecoin supply and the fall in sentiment, as measured by the Fear & Greed Index, indicate that while price reactions were muted, liquidity and investor confidence remain under pressure following the Binance incident.
Looking ahead: funds recovery and sentiment watch
Key factors to monitor include any future upward turn in stablecoin inflows, stabilization of withdrawal trends at Binance, and official updates on the investigation or potential recovery of the stolen funds. Reuters cited the FBI’s attribution of the hack to North Korea, while AP carried a swift denial from the government. This leaves the question of final responsibility unresolved.
Analysts observed that persistent outflows and ongoing reductions in stablecoin supply could signal cautious behavior by market participants, even as price movements remain relatively stable. The situation highlights the continuing risks around exchange security and the importance of robust custody measures for digital assets.
