How Binance Was HACKED For $6 Billion

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The Binance hack, estimated at over $6.3 billion, has triggered a significant market downturn, impacting major cryptocurrencies. Bitcoin experienced a sharp decline, falling below $77,000 and testing a six-week low near $76,368, with total liquidations exceeding $1.55 billion in the 24 hours following the exploit. Ether also saw a substantial drop, falling over 5% to below $2,190, while BNB and XRP experienced similar price corrections. The incident involved the exploitation of a flaw in Ethereum's EIP-7702 upgrade, allowing an attacker to access hot wallets and initiate unauthorized withdrawals. While Binance has pledged to cover all user losses from its SAFU fund, the broader market sentiment has been negatively affected, leading to increased volatility and a dampening of risk appetite. The estimated total impact of the hack is around $6.3 billion, with approximately $3 billion frozen on-chain. The exploit also led to cascading liquidations, affecting nearly 240,000 traders, with long positions accounting for the majority of the losses. The market's reaction underscores the interconnectedness of the crypto ecosystem and the potential for systemic risk following major security breaches.

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