Binance Hacking Fears Spark Crypto Rout as Bitcoin Breaks Below $79,000

Assets worth $2.77 billion were seen leaving wallets linked to global cryptocurrency exchange Binance, prompting the platform to launch an urgent investigation. Amid suspicions of a hack, Bitcoin fell below $79,000 for the first time in about 40 days and dropped more than 9% intraday. Stablecoin issuers including Tether also moved to freeze large sums.

On Oct. 29, signs of outflows totaling $2.77 billion across five blockchains were detected from Binance-linked wallets. The large-scale asset movements fueled suspicions of a hack, and Binance began responding to the situation.

Major cryptocurrencies fell across the board. In Binance's Tether market, Bitcoin dropped as low as $78,297.05 during the session. It was the first time Bitcoin had fallen below $79,000 since Sept. 20. Ether fell about 4.8% intraday to $2,233.

BNB posted a steeper decline, slumping as much as 9.11% from the previous day to $680. XRP fell as much as 6.11% to $1.2233, while Solana dropped as much as 6.67% to $95.

Binance said in an official notice that user funds are safe. The company said it is aware of reports of a potential security issue and is actively investigating the matter. Confirmed details will be shared through official channels, it added.

Stablecoin issuers also moved to block further transfers tied to the funds. Tether Chief Executive Officer Paolo Ardoino said more than 1.567 billion USDT had been frozen in connection with the possible hack of Binance. Circle also froze about $823 million.

CZ said Binance appears to have been hacked and that, as a shareholder, he expects all user funds to be fully reimbursed.