Live Feed

U.S. CFTC Chairman Michael Selig said in a CNBC interview on the Binance hack that the agency will create an institutional option for cryptocurrency exchanges to come under federal-level regulation and oversight. Selig added that when FTX collapsed, some exchanges were licensed at the state level but were not subject to federal market regulation. The CFTC is trying to introduce a market-based regulatory framework that includes protections against market manipulation and fraud, segregation of customer assets, and separation among broker, exchange and clearing functions, he said. While the agency does not have the authority to require all exchanges to register with the CFTC, it plans to let them choose a federal registration and regulatory regime.

Losses from the Binance hack were larger than the combined total from the second- through 10th-largest hacking incidents historically attributed to North Korean actors, according to Unfolded. Unfolded said total losses from North Korea-linked hacks since 2019 have reached $9.6 billion, with the Binance hack accounting for about $6.3 billion.

Decentralized AI prediction network Allora said its network and the ALLO token contract remain secure following the Binance hack on Oct. 30, and that ALLO held outside Binance was not affected. After confirming that some ALLO held at Binance had been leaked, Allora said it activated an emergency safeguard built into the token contract to block further transfers. The attacker cannot move, sell or use the ALLO, according to Allora, which added that none of the stolen tokens had been sold or moved خارج the attacker’s wallet. A process is under way to restore all affected ALLO to Binance without changing total supply, and Allora said it will provide another update once the recovery is complete.

The U.S. Secret Service said investigators are working with private-sector partners, including Circle, to identify, freeze, trace and recover funds stolen in the Binance hack, according to Walter Bloomberg. The agency added it is also working with the U.S. Attorney’s Office for the District of Columbia and other law enforcement authorities to identify those behind the cybercrime. CoinNess previously reported Binance was cooperating with the FBI, the U.S. Secret Service and other authorities in connection with the $6.3 billion hack.

Uber took part in a blockchain-based investment and financial transaction test with HSBC and Franklin Templeton, Bloomberg reported. Using HSBC tokenized deposits, Uber bought Franklin Templeton’s tokenized money market fund on Thursday and sold it on Sunday, allowing it to manage funds during a period when traditional financial markets were closed and capture an additional 1.5 days of yield. Tradeweb and Fireblocks also joined the trial, while Canton Network handled liquidity provision and settlement, according to Bloomberg.

Crypto trader Bonk Guy, who has about 339,000 followers on X, said altcoins have remained relatively resilient even as Bitcoin fell below $77,000. Bonk Guy added Binance appears to have repurchased a significant share of assets affected by the hack, while around $3 billion in assets frozen on-chain could eventually be returned. Although BTC could fall further to form a short-term bottom, most of the selling pressure on altcoins has likely been absorbed, Bonk Guy said, adding the current market favors buying altcoins and using dollar-cost averaging on further dips.

According to CoinNess market monitoring, BTC has risen above $78,000. BTC is trading at $78,003.48 on the Binance USDT market.

DeFi analyst Ignas said on X that posts framing market selloffs as buying opportunities used to surge during past downturns, but such reactions have recently become hard to find, as retail investors once drawn to crypto have shifted to markets such as AI-related stocks, gold and quantum computing plays. Ignas added that while Bitcoin holding in the $77,000-$80,000 range despite the Binance hack has been cited in multiple X posts as a bullish sign, the more fundamental question is who is doing the buying. Retail investors have left the market, and ETF buyers have also disappeared, Ignas said. He also said some assets are fortunately showing signs of decoupling from Bitcoin, adding that assets such as Hyperliquid's HYPE, which has been embraced by traditional finance, and Zcash's ZEC, which he described as being in the realm of conviction, look attractive.

Kamino (KMNO) said it resumed lending for the SOL/BTC trading pair after continuing to monitor developments related to the Binance hack. After reviewing on-chain activity during the suspension, Kamino said it found no immediate risk to the market or users and was not affected throughout the period. It added that deposits, withdrawals and repayments were processed normally.

Crypto asset manager 21Shares said in a report that Bitcoin fell just over 2% in the 24 hours after the $6.3 billion Binance hack, in contrast to the roughly 26% plunge during the FTX collapse in November 2022. The report said the incident was a security breach at a specific exchange rather than a problem with Bitcoin’s own security, and added that, unlike the FTX collapse, the shock did not spread across Bitcoin and the broader cryptocurrency ecosystem. It also described the Binance hack as the largest theft in financial market history, noting that about $3 billion of the stolen assets has been frozen on-chain while the remaining roughly $3.3 billion is still exposed to risk.

Popular crypto trader Ansem warned on X that Bitcoin’s roughly 2% decline despite the negative impact from the $6.3 billion Binance hack should not be mistaken for a bullish signal. Ansem said retail speculative demand had historically been concentrated in leveraged Bitcoin trading, but has recently spread across memecoins, onchain assets and stock perpetual futures, changing the market structure. Ansem explained this was a main reason Bitcoin volatility could be lower than in the past even amid a major negative event. With fewer speculative traders taking leveraged long Bitcoin positions, immediate downside moves in response to bad news may be smaller, Ansem said. But Ansem added this should not be interpreted as the end of the downtrend, and instead suggests selling pressure is acting more passively.

Binance CEO Richard Teng said on X that the exchange is working to resume withdrawals and is targeting a restart by Sunday, while withdrawals will remain suspended until strict testing is completed. Teng also said Binance has secured more than $6.34 billion in company funds to cover stolen assets. Of that amount, $5 billion is already being held in the affected tokens, while the exchange is replenishing the stolen token assets through market purchases and OTC channels. Binance plans to complete the remaining purchases and verify the holdings through proof of reserves, with a proof-of-reserves report set to be shared by Monday next week.

Analysts at three Wall Street firms, including Cantor Fitzgerald, TD Cowen and Compass Point, see the broader crypto market impact from Binance’s $6.3 billion hack as limited, CoinDesk reported. Cantor Fitzgerald analyst Ramsey El-Assal viewed the industry’s swift response to the hack as a positive sign and said the crypto ecosystem has steadily been building its ability to respond. TD Cowen analyst Lance Vitanza argued that just as a bank robbery would not lead people to stop using dollars, and car theft does not invalidate automobiles as a technology, the latest market drop could offer a buying opportunity in shares of companies that hold Bitcoin and other cryptocurrencies on their balance sheets. Compass Point also assessed that Binance has sufficient liquidity to cover customer losses.

Mirae Asset Asset Management said in a filing with the U.S. SEC that it increased its Strategy holdings by 24% in the third quarter to 168,634 shares. The stake was worth about $21.8 million at current market prices. Bitcoin Treasuries said Mirae Asset, which manages about $1 trillion in assets, is increasing its BTC exposure through a Bitcoin-accumulating company.

Binance spot trading volume in HYPE surged past $16.2 billion, setting a record high after news of a collaboration involving Hyperliquid and Intercontinental Exchange, the parent of the New York Stock Exchange, crypto analyst Darkfost said. Darkfost said HYPE rose about 24% from $81 to $97 in a day alongside the jump in volume. The analyst added the spike in both volume and price came just after TradeXYZ and ICE announced plans to build a Hyperliquid-based perpetual futures market for the U.S. market. CoinNess previously reported that TradeXYZ and ICE plan to launch a 24-hour perpetual futures market for stocks, commodities, foreign exchange and cryptocurrencies, subject to regulatory approval. HYPE was recently trading at $90.58, down 0.29%.

Sebastian Pulido, Grayscale’s head of onchain asset management, said in a recent interview that by 2030 the key yardstick for the tokenized asset market will be real-world utility rather than the size of tokenized assets. Pulido cited pricing reliability, liquidity and collateral usability as the core competitive strengths of tokenized products. Pulido added that tokenized money market funds are already being used as margin on some exchanges and said the practical use cases for tokenized assets are likely to broaden. Over the long term, Pulido said the market is likely to shift away from retroactively tokenizing traditional assets toward issuing assets onchain from the outset.

Lisk said the Lisk chain is scheduled to cease operations at the end of Nov. 2. The project advised users who have started withdrawals to check whether the prove step has been submitted and, once claiming becomes available, complete the claim on Ethereum. It added that a withdrawal is only completed after the claim is finished.

Aave said on its official X account that it has resumed operations across all markets in its V3 and V4 protocols after freezing them as a precaution in response to the Binance hack. The DeFi lending protocol had previously halted new deposits and borrowing tied to its Binance hack response, while partially maintaining withdrawal and repayment functions. Aave said none of its own contracts were affected by the Binance hack and all positions remained sufficiently collateralized. As an additional precaution, it temporarily set the loan-to-value ratio to zero for USDT, USDC, USDT0, POL, WAVAX, sAVAX, XAUT, PAXG, and OP, restricting new borrowing against those assets as collateral.

Strategy founder Michael Saylor said on X that the cryptocurrency industry would learn from the latest Binance hack and emerge stronger and more resilient by strengthening security. Saylor added Binance had pledged to use its own balance sheet to fully compensate affected customers, and said he believed the exchange would follow through.

Uniswap, Andreessen Horowitz, and the DeFi Education Fund urged Illinois to exempt DeFi-related transactions from the state’s virtual-asset tax rules, The Defiant reported. The groups argued asset withdrawals to personal wallets and the use of bridges should be excluded from taxes levied based on asset value, and also called for removing a requirement that virtual-asset businesses keep records of private keys.

Major U.S.-listed crypto-related stocks are falling sharply amid the fallout from the Binance hot wallet hack. Coinbase (COIN) was down 12.4%, while Strategy (MSTR) slumped 11.9%.

According to CoinNess market monitoring, BTC has fallen below $77,000. BTC is trading at $76,998.08 on the Binance USDT market.

Anchorpoint will introduce the Hong Kong dollar stablecoin HKDAP to the layer-one blockchain Solana, according to Solana. In HKDAP’s first public-network collaboration, the token will be issued and redeemed natively on Solana. It is expected to support near-instant settlement and be used across applications ranging from retail payments to tokenized assets.

Macro and energy analyst Doomberg said in an interview with Bitcoin Magazine that U.S. pressure on allies to hold Treasuries is fundamentally changing how global central banks calculate their reserve-asset portfolios. Doomberg said that in a liquidity crunch, investors sell the assets that can be offloaded immediately in the market rather than the assets they want to keep, adding that gold’s short-term weakness seen since late February also reflected unavoidable selling to secure liquidity. Over the longer term, however, Doomberg said deeper political and geopolitical dependence in foreign-exchange reserves is likely to spur demand for "Neutral Reserve Assets" that are not controlled by any single country. Doomberg said gold and Bitcoin could emerge as key assets to replace eroding trust between states and enter an "Extremely Bullish" long-term phase. Doomberg added that younger generations more familiar with the internet are increasingly likely to adopt Bitcoin over gold as a practical store of value.

The three major U.S. stock indices opened lower today. - S&P 500: -1.1% - Nasdaq: -2.2% - Dow Jones: -0.2%