Key Takeaways
- • U.S.-listed Bitcoin funds recorded net outflows of $1.04 billion across Friday and Monday, according to a Bloomberg tally, following the October 29 hack of crypto exchange Binance.
- • BlackRock's iShares Bitcoin Trust accounted for $405 million of the withdrawals on Monday, per Bloomberg.
- • Binance said approximately $6.34 billion in digital assets were affected and about $2.85 billion have been frozen or intercepted, and that it will absorb the financial impact rather than pass it to users.
- • Binance cited the FBI as indicating North Korea is responsible; Pyongyang has denied involvement, according to Bloomberg.
- • Bitcoin traded at a bit over $77,000 on Tuesday, near its 100-day average price, as U.S. midterm election uncertainty weighed on crypto investors.
Summary
U.S.-listed Bitcoin funds saw net withdrawals of $1.04 billion across Friday and Monday, according to a tally by Bloomberg. The outflows followed the October 29 hack of crypto exchange Binance and coincided with the arrival of U.S. midterm elections. BlackRock's iShares Bitcoin Trust made up $405 million of the money pulled on Monday.
Binance published an initial report on Tuesday describing a "sophisticated, multi-stage campaign" by attackers who combined fake recruitment interviews, malicious software downloads, compromised internal AI tooling and endpoint compromise. The company said about $6.34 billion in digital assets were affected, with roughly $2.85 billion frozen or intercepted. Binance said it will absorb the financial impact rather than its users, and that 98% of the affected token assets had been replenished as of October 31. The company cited the Federal Bureau of Investigation as indicating North Korea is responsible; Pyongyang has denied involvement, according to Bloomberg.
Binance Co-CEO Richard Teng told CNBC that the attackers worked toward the breach over months. He said that in June, the attackers set up a fake version of a developer tool and lured an engineer into installing it, and later posed as recruiters to question a second engineer, a process that culminated in a programming task carrying concealed malicious code. Binance suspended withdrawals during the incident, and certain withdrawals remain temporarily restricted, according to CNBC. The exchange is engaging independent security firms to review the incident.
Bitcoin changed hands at a bit over $77,000 on Tuesday, close to its average price across the past 100 days. Bloomberg said the midterm elections add uncertainty for crypto investors: a Democratic sweep of the House and Senate could shift congressional focus from the market-structure legislation the industry supports toward scrutiny and probes. The Clarity Act, an industry priority, stalled in the Senate in September. Russell Thompson, chief investment officer at Hilbert Group, said, "I do not think a significant Democrat win is priced into the price of Bitcoin," according to Bloomberg.
Binance published an initial report on Tuesday describing a "sophisticated, multi-stage campaign" by attackers who combined fake recruitment interviews, malicious software downloads, compromised internal AI tooling and endpoint compromise. The company said about $6.34 billion in digital assets were affected, with roughly $2.85 billion frozen or intercepted. Binance said it will absorb the financial impact rather than its users, and that 98% of the affected token assets had been replenished as of October 31. The company cited the Federal Bureau of Investigation as indicating North Korea is responsible; Pyongyang has denied involvement, according to Bloomberg.
Binance Co-CEO Richard Teng told CNBC that the attackers worked toward the breach over months. He said that in June, the attackers set up a fake version of a developer tool and lured an engineer into installing it, and later posed as recruiters to question a second engineer, a process that culminated in a programming task carrying concealed malicious code. Binance suspended withdrawals during the incident, and certain withdrawals remain temporarily restricted, according to CNBC. The exchange is engaging independent security firms to review the incident.
Bitcoin changed hands at a bit over $77,000 on Tuesday, close to its average price across the past 100 days. Bloomberg said the midterm elections add uncertainty for crypto investors: a Democratic sweep of the House and Senate could shift congressional focus from the market-structure legislation the industry supports toward scrutiny and probes. The Clarity Act, an industry priority, stalled in the Senate in September. Russell Thompson, chief investment officer at Hilbert Group, said, "I do not think a significant Democrat win is priced into the price of Bitcoin," according to Bloomberg.
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