TL;DR

• Cryptocurrency markets extended their losses after Binance reported a major security breach estimated at $6.3 billion.
• BNB declined more than 8%, while Bitcoin approached $77,000 and Ethereum fell below $2,300. More than $1.5 billion in leveraged positions were liquidated as investor sentiment weakened. Binance
• pledged to cover customer losses and confirmed that approximately $3 billion in affected assets had been frozen.

Binance Hack Triggers $1.5 Billion in Crypto Liquidations

The market downturn coincided with reports that Binance had suffered a security breach affecting approximately $6.3 billion in cryptocurrency. The incident triggered substantial liquidations across derivatives markets as leveraged traders struggled to maintain their positions during the sudden price decline.

According to the latest reports, total cryptocurrency liquidations reached approximately $1.55 billion over 24 hours. Long positions accounted for roughly $1.34 billion of that amount, indicating that bullish traders absorbed most of the losses. The largest individual liquidation order identified during the period involved an approximately $11.09 million BTCUSDT position on Binance.

The market reaction also pushed the Crypto Fear and Greed Index down to 30, its lowest reading since August 14, reflecting growing caution among investors. Bitcoin’s decline below $77,000 added to concerns that further forced selling could accelerate the broader correction.

Bitcoin, Ethereum, and Binance’s native BNB token all recorded significant losses, with traders reducing exposure amid uncertainty surrounding the exchange’s security incident. According to CoinGecko data reported early Friday, BNB dropped approximately 8.2% over 24 hours to around $693. Bitcoin declined 4.8% to approximately $77,131, while Ethereum lost 5.7%, trading near $2,217. The sell-off also extended to decentralized finance tokens. AAVE fell 11.3% to $118.54, while Uniswap’s UNI declined 10.4% to $6.48.

Binance Pledges to Cover All Customer Losses

Despite the scale of the incident, Binance attempted to reassure customers by promising to absorb all losses resulting from the security breach.

Co-CEO Yi He confirmed that the exchange would cover affected user funds, while the company reported that approximately $3 billion in assets linked to the incident had been frozen.

The exchange also temporarily suspended deposits and withdrawals while conducting security checks and coordinating with blockchain analytics companies, law enforcement agencies, and cryptocurrency issuers.

Binance’s initial investigation pointed to a potentially compromised DevOps engineer’s laptop, which may have allowed an attacker to access internal infrastructure and submit unauthorized withdrawal transactions.

Bitcoinist previously covered the Binance hack and the estimated $6.3 billion in affected assets.

Aave Introduces Emergency Restrictions as DeFi Faces Pressure

The consequences extended beyond centralized exchanges, with decentralized lending protocol Aave also introducing precautionary measures.

Aave temporarily froze new deposits and borrowing across its community-operated V3 and V4 markets following concerns about activity connected to the Binance attacker.

The protocol clarified that its smart contracts had not been compromised. Users could still withdraw available funds and repay outstanding loans.

Meanwhile, Binance received support from other industry participants, including Coinbase CEO Brian Armstrong, who said the exchange was working to block transfers involving compromised wallets.

The response highlights how quickly security incidents involving major exchanges can create risks across interconnected cryptocurrency platforms.

Crypto Market Recovery Depends on Restoring Investor Confidence

Although Binance’s commitment to cover customer losses helped address immediate concerns about user funds, uncertainty surrounding the breach continued to weigh on market sentiment.

Some analysts argued that the market reaction remained relatively contained given the estimated size of the theft and the exchange’s substantial assets under custody. Others warned that confidence would depend on Binance restoring normal operations and providing greater transparency about the incident.

For Bitcoin and the wider cryptocurrency market, the immediate focus remains on whether selling pressure will continue as investigators trace the remaining stolen assets.

The incident also renews questions about centralized exchange security and the risks associated with keeping large cryptocurrency balances on trading platforms.

Until more details emerge, volatility and cautious positioning are likely to remain important factors shaping the market’s next move.

Bitcoin Magazine

Coinbase (COIN) Misses Revenue Estimates as Users Fall, Armstrong Sets Up New Share Sales

Coinbase had a mixed third quarter. Revenue came in at $1.20 billion, below the $1.233 billion analysts expected, according to company filings. Subscription and services revenue did better, reaching $570 million. The company is still heavily tied to trading activity, but its recurring income is growing.

Monthly Transacting Users fell to 7.4 million, down from 9.3 million a year earlier. During its earnings call, Coinbase blamed overall market conditions. Its share of crypto trading volume did rise to 10.7%, the fourth straight quarter of gains, which suggests it is winning business even as the broader market quiets. 

Adjusted EBITDA was $332.9 million, extending a run of 15 straight profitable quarters on that measure. The prediction markets business passed $200 million in annualized revenue, and Coinbase One hit a record number of subscribers.

Coinbase CEO preps share sales

Separately, filings reported on October 30 show CEO Brian Armstrong has set up a plan to sell up to 8.17 million Class A shares. He adopted the plan in August under SEC Rule 10b5-1, which lets executives schedule sales ahead of time. Sales could run from November 16 through October 2027, subject to stock price conditions. Co-founder Fred Ehrsam and President Emilie Choi have similar plans, bringing the total to about 13.6 million shares.

This is not new territory for Armstrong. In the past, VanEck analyst Matthew Sigel tracked about $545.7 million in sales over nine months, starting in April 2025. Armstrong has said these sales are part of his risk management, not a signal about the company.

Coinbase stock slumps nearly 15% 

Coinbase shares (COIN) fell about 15% today, but not necessarily due to this earnings report. 

Binance disclosed a security breach on October 29 that it estimates at $6.3 billion, making it the largest crypto theft on record. Around $3 billion in assets has been frozen so far, with industry partners assisting in the freezes. 

The hackers are allegedly linked to North Korea, though Binance has not attributed the attack to any group. The exchange says it has found no evidence of a leaked wallet private key.

Binance says it has $6.34 billion in reserves available to cover losses. Deposits were unaffected, and the company expects to resume withdrawals within 48 hours. Figures remain preliminary, and estimates vary slightly across outlets.

The market reacted quickly. Bitcoin fell roughly 4.5% to below $77,000. Shares of Strategy (MSTR) fell nearly 10% on the day. Strive (ASST) shares fell over 12% at times. Coinbase’s stock is down over 55% on the year.

This post Coinbase (COIN) Misses Revenue Estimates as Users Fall, Armstrong Sets Up New Share Sales first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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A recap of Cointelegraph’s live coverage of the Binance hack, including early breach reports and the exchange’s full reimbursement pledge.