Analysts react as Binance freezes assets after $6.3 billion security breach
COIN•Binance said a security breach had an estimated $6.3 billion impact and that about $3 billion of affected assets had been frozen. Bitcoin and ether fell more than 3%, while Coinbase shares dropped 4.8% and Strategy shares fell nearly 6% in extended trading.
1. Assets frozen
Binance said the breach had an estimated $6.3 billion impact and that it had worked with partners to freeze about $3 billion of the affected assets. It gave no update on the remaining $3.3 billion. Chainalysis said its investigation was ongoing and that it had confirmed at least $5.912 billion was stolen, with funds moving across multiple blockchains.
2. Markets react
Bitcoin hit a six-week low and was last down 3% at $76,469.82, while ether fell more than 3% to $2,185.83. Coinbase Global shares slid 4.8% and Strategy shares fell nearly 6% in extended US trading.
3. Analysts assess risks
Analysts raised concerns about liquidity, withdrawals and confidence in centralized exchanges. Chainalysis said about $3 billion had been frozen; other analysts said the eventual market impact would depend in part on recovery efforts and Binance's ability to restore normal operations.
