Bitcoin fell below $77,000 to its lowest level since September after a suspected security breach at Binance rattled cryptocurrency markets. Ethereum and Solana also declined as investors assessed the potential fallout from the incident at the world's largest cryptocurrency exchange.
Binance said $2.54 billion in crypto assets had been frozen as it investigated the breach. Tether and Circle, two major stablecoin issuers, also froze funds linked to the incident, while the exchange said it would cover all customer losses.
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The incident comes at a sensitive time for cryptocurrency markets. Traders are preparing for the expiry of $11 billion in options on Friday, while next week's US midterm elections could influence the direction of cryptocurrency regulation if Democrats regain control of one or both chambers of Congress.
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The latest security scare adds to a series of incidents involving cryptocurrency exchanges and digital asset platforms, putting the industry's efforts to build confidence among investors under pressure.
Bitcoin fell below $77,000, its lowest level since September, according to Bloomberg. Ethereum declined nearly 4%, while Solana shed about 3%, CNBC reported. Bitcoin had dropped more than 3% following statements from cryptocurrency executives about the suspected breach.
The weakness extended to US equities, with the Nasdaq 100 falling nearly 1.4% as US stocks ended lower.
Binance Suspends Withdrawals As Hack Investigation Continues
Binance temporarily suspended deposits and withdrawals while its teams investigated the security incident and worked with law enforcement agencies and industry partners.
The exchange said $2.54 billion in assets had been frozen, warning that the amount could increase as efforts to trace the funds continued. Trading on its Binance Alpha platform was also temporarily suspended as a precaution.
"We are working non-stop to resolve this issue. Binance will cover all losses," the exchange said in a post on X.
Co-founder Changpeng Zhao, who no longer runs Binance but remains its largest shareholder, said the incident appeared to involve a hack. He expected customer funds to be fully covered, he said.
Binance has more than 300 million registered users globally and reported about $160 billion in assets under custody in its 2024 annual report.
Tether, Circle Freeze Billions In Funds Linked To Binance
The investigation has drawn in major cryptocurrency firms, with Tether and Circle freezing assets linked to the suspected breach.
Tether Chief Executive Officer Paolo Ardoino said the company had frozen more than $1.5 billion in USDT, its stablecoin, in connection with the incident. Circle Chief Executive Officer Jeremy Allaire said his company had frozen more than $800 million in USD Coin.
The frozen assets may represent only part of the funds involved. Blockchain analytics firm Arkham Intelligence identified 55 wallet addresses linked to the potential exploit, which held nearly $6 billion in digital assets. That figure does not establish how much was stolen.
Binance said it was working with law enforcement agencies, token issuers and blockchain intelligence firms to trace and freeze additional assets.
Binance Incident Adds To Crypto Industry's Security Woes
The suspected breach comes amid a series of security incidents across the cryptocurrency industry.
In February 2025, attackers stole nearly $1.5 billion in digital assets from Bybit. Cryptocurrency exchange Bitget reported a theft of about $350 million in September 2026.
Polymarket also temporarily halted trading on its international exchange for an hour after a security incident involving a third-party software provider. Blockchain analytics platform Bubblemaps said more than 700 users lost $2.7 million in the incident.
Polymarket later resumed trading and said it would fully reimburse affected traders.
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