Bitcoin Crashes Below $77K as Binance Faces $6.3B Security Breach, $3B in Crypto Frozen

• The Binance hack has put crypto security back in focus, with the exchange estimating a $6.3B impact and freezing nearly $3B in affected assets
• The Bitcoin price slipped below $77K as concerns surrounding the Binance incident added to selling pressure across the crypto market
• The Bitcoin crash added to market volatility, with $1.55B in crypto positions liquidated, including $1.34B in long positions, leaving leveraged traders facing significant losses

The cryptocurrency market is currently reeling under pressure, as the new Binance hack triggered selling pressure across the market. Binance, one of the leading cryptocurrency exchanges, disclosed a new hacking incident, which Binance estimates had a total impact of nearly $6.3B. This incident has once again raised questions concerning crypto security, leading Bitcoin to tumble below $77K amid renewed pressure.

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Binance Hack: What Happened?

Binance is currently investigating one of its major security incidents, which the exchange disclosed recently. The exchange’s initial estimate shared how the total impact of the incident could reach $6.3B. Per Chainalysis, nearly $5.9B worth of crypto was estimated to have been stolen, with the investigation still ongoing to provide a deeper and more accurate account.

Per the new updates released by the exchange, Binance shared how this hack may have involved a compromised laptop belonging to a DevOps engineer. The attacker may have used that laptop to access a service container and submit unauthorized withdrawal transactions. Binance further shared that it did not find any evidence of leaked wallet private keys related to the incident.

For security measures, the exchange has temporarily suspended deposits and withdrawals. It has also revoked affected address authorization and contacted law enforcement and blockchain intelligence agencies to trace the funds.

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Binance Freezes $3B in Crypto, Promises to Cover the Losses

One of the leading missions for Binance is to recover affected assets and crypto losses. Adding to this, Binance stated how it has frozen nearly $3B of crypto on-chain. Stablecoin issuers such as Tether and Circle also confirmed that they had frozen funds linked to the incident.

The exchange later shared how it will cover the losses using its Secure Asset Fund for Users, or SAFU. The exchange has reassured its customers that their user funds are safe.

Bitcoin Crashes Below $77K Amid Renewed Sell Pressure

The Bitcoin price has reacted to this recent incident, leading the asset to crash below $77K. BTC dropped 4.5% in 24 hours, hitting $76,664. Other cryptocurrencies, such as Ethereum, BNB, and XRP, also noticed significant declines in their prices, as mounting selling pressure swept the crypto market.

This Bitcoin crash also coincided with the sharp increase in leveraged trading liquidations. Nearly $1.55B in crypto liquidations hit the crypto market, including $1.34B in long positions.

Per the MCO Crypto Calculator tool, a hypothetical investment of $1,000 at $80K would have resulted in a loss of approximately $41.70, or 4.17%, following the Bitcoin price decline to $76,664.

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