Binance $6.3B Hack Sparks Crypto Stock Selloff and Political Clash

Binance has confirmed a hack that stole approximately $6.3 billion in cryptocurrency, marking the largest theft in the industry’s history. The exchange said it would absorb the financial impact rather than pass the losses on to users, setting aside more than $6.34 billion to cover affected funds. According to Binance, roughly $3 billion of the stolen assets had been frozen across multiple jurisdictions by Saturday, when the exchange said it had already covered 90% of the impacted losses.

The breach also triggered political reactions as voting began in the United States ahead of the Nov. 3 election. President Donald Trump said the administration was looking into the incident and noted Binance’s promise to cover the stolen funds. Republican and Democratic representatives quickly began taking positions, although it remained unclear whether the hack would provide either side with an immediate political advantage. The attack was widely attributed to a North Korean group, according to the original report.

Crypto-linked equities sold off following Binance’s disclosure. Coinbase (COIN) led the declines, falling more than 13% after reporting a drop in third-quarter revenue. Stablecoin issuer Circle Internet Group (CRCL) lost more than 9%, while Bitcoin treasury company Strategy (MSTR) slipped about 8%. Bitcoin mining and data center operator IREN dropped more than 10%, and blockchain-based financial services company Figure Technology Solutions (FIGR) fell roughly 9%. The market moves, based on Yahoo Finance data at the time of publication, added to pressure on crypto-related stocks as investors assessed the financial and reputational fallout from the record-breaking breach.