Morning Minute: Binance Hack Leads to Mass Outflows While FBI Opens Probe
Summary
A reported $6.4 billion Binance hot-wallet hack, attributed to North Korea-linked TraderTraitor, was followed by sharp crypto ETF outflows. Bitcoin ETFs lost $643.3 million on Friday, pushing October flows from a $127 million gain to a $515.9 million loss; Ethereum ETFs recorded $1.61 billion in monthly outflows. Binance said it would cover losses with corporate funds and its SAFU reserve, and withdrawals resumed, with more than $3.6 billion reportedly withdrawn. The CFTC chair cited the hack in advocating a route for offshore exchanges to register and meet U.S. cybersecurity standards. The FBI and Secret Service are investigating. Binance may need to purchase about $1.3 billion in crypto to replenish the reimbursement pool.
