Binance Hacked For $6.3 Billion - Comprehensive Breakdown Of What Happens To Bitcoin...

On October 29th, 2026, $6.36 billion was stolen from Binance by the North Korean hacking group Trader Trader. In today's video, I'm going to be breaking down exactly what took place and the impact that it is most likely going to have and is having on the Bitcoin market. My name is Jeff McAfee. I've been working in the Bitcoin and cryptocurrency space since Bitcoin was trading at $2,900. And it is my passion to help you understand exactly what's going on with clarity so that you know exactly how to act. Without much further ado, let's go ahead and dive right on into it. Today's video is brought to you by iTrust Capital. More on that in a little while, but let's go ahead and go over exactly what took place. At approximately 2000 hours yesterday, uh UTC, we saw a massive attack take place on Binance, which caused a $6.36 billion draining of 10 of a wallet across 10 different blockchains. Most of this took place in about 20 minutes, and we're going to be showing you the exact price movement down to the minute as this took place here in a moment. But first, I want you to see this 20 uh $6.36 billion worth of funds were drained. This is about four times larger than the last largest hacking event in history, which was a $ 1.5 billion draining of Binance of Bybit, excuse me, in February of 2025. Like I said, this hack and the and the previous largest hack on Bybit were both executed by the North Korean elite hacking unit, Trader Trader, based on TRM's robust on and off-chain intelligence. They make that judgment with high confidence. Essentially, the way that this took place is that an Ethereum wallet was using the upgraded EIP702 delegation feature to turn bitcoins um which allows for hot wallets to have a large amount of delegation handed to them, which helps for the ability for exchanges to process large amounts of transactions. Unfortunately, the hacker was able to compromise this feature in that hot wallet and pre-authorize 50 different transactions, allowing for a withdrawal of basically everything in that wallet, which total about $6.36 billion worth of funds. This came with a large amount of Ethereum, a large amount of Bitcoin, and a large amount of stable coins. The stable coin issuers, Tether Circle, Ripple, Ripple, and World Liberty Financial were able to freeze about $2.67 billion worth of the stable coins. Um, and Arbitum Security Council froze 80 8,426 Ethereum and 74.6 million ARB on its network. A also froze much of its dealings for a little while because the hacker was able to transfer a large amount of stable coins over to A and then borrow Ethereum against that stable coin, leaving A with bad debt and taking the Ethereum um as theft. This is obviously a very big hack and it is a very big deal. But the good news is this. It does appear that Binance is going to be able to use its SEFU fund and their corporate holdings to be able to reacquire all of these assets and guarantee the liquidity and solveny of the exchange. Co-CEO co-founder and custom uh and chief customer service officer uh Yihi worked all night on this. Binance former CEO Changping Xiao noting that she is pregnant and she pulled an allnighter trying to fix this. She says this, "Binance's Safu Fund and Binance's holdings include a large amount of assets such as Bitcoin and Ethereum. We are currently buying through OTC and on exchange all the stolen altcoins in fully matching amounts. We will update everyone once again once the purchases are complete." Binance posting 3 hours ago that Binance has begun recovering affected assets for users and continues to work with law enforcement issuers and blockchain intelligence firms and industry partners to trace, freeze, and recover additional funds. The company has already publicly committed to cover losses through this hack. So, the bad news is the hack took place. $6.3 billion are gone and it's very unlikely that they're ever going to be able to be recovered. The good news is the SEFU fund which totaled about $1.27 billion and the rest of and uh the rest of the hack seems to be able to be covered by corporate cash held at Binance. This is a very very telling story. And before I get on to the minute charts, I'm going to break down exactly what happened on the minute chart, the impact that this had, and where I think that this is going. I want to draw a very interesting parallel. At the beginning of the last bull market, we saw the midterm elections happen in early November, right around the exact same time that FTX suffered a massive solveny crisis and went bankrupt. This was the event that ended up leading to the massive bull market that we witnessed in 2023, 24, and 25. Now, it's not what caused it, but it's ex it's what immediately preceded that massive bull market that we saw the FTX liquidation. It is very important to note that this is arguably an even larger solveny crisis than what we saw with FTX, but Binance is going to be able to cover all of the stolen funds out of corporate cash. We just went through a bare market and Binance has the cash on hand to secure the other 5.1 billion worth of funds that were stolen that were not covered by the insurance fund. This should show everyone, whether it be retail traders, investors, um institutional investors, you name it, that Bitcoin and cryptocurrency is a significantly more durable industry today than it was 4 years ago. This is although it should never have happened and and we do need to be more careful with the way that we handle funds to ensure that hacks like this never take place and never happen again. We should also be careful to understand that the durability that the Bitcoin and cryptocurrency space have built in the wake of what happened with FTX was tested today and it seems that the test was passed. Binance seems that it's going to be able to restore all customer funds and that Binance is going to be able to ensure um solveny for the its exchange. So that is a very good sign. So how is the how is this going to impact the Bitcoin market? Well, I want to start down on the minute chart and tell you the minute-by-minut story at 2000 at 2005 hours uh UTC yesterday. And you can see I've actually adjusted our um time frame here to UTC. So we can track this at uh 2005 uh uh 2000 hours and 5 minutes. That's about you know 8:05 in the afternoon. We saw the hack take place right here. What is very interesting to me and uh I I do want to point this out. What is very interesting to me is that the sell-off began about 5 minutes before that. It It's just interesting. I I I'm not making any accusations or anything. It's just very interesting. I would not be surprised if the hacker had some kind of massive short um open at the time of the hack knowing full well that this was going to cause the price to crash. As the hack began at 205, we saw Bitcoin not really respond. And then we saw as the hack became obvious, Bitcoin went through a major capitulation from where it was trading at $80,300 down to where it dropped to $78,000. But that was not the extent of the correction. Bitcoin would go on to correct all the way through the night down to $76,000, which is where it has been attempting to hold ever since. It is important to note that as Bitcoin has been going through this corrective movement, it has, as it generally does, followed very uh very much streamlined technical analysis. We saw a massive capitulative event. Bitcoin then rallied immediately right back up to the 382 and then immediately fell right back over. It is important to note that this is a very low bounce. Generally, if Bitcoin were in a more healthy state, we would expect a bounce up to the 618, but we didn't. We saw a bounce up to 382, which indicates that Bitcoin is still very weak right now. And this brings us back out to the daily chart. What we have been tracking is that Bitcoin has been going through a sell-off over the last month and a half as a result of routine profit taking from people that bought Bitcoin down here around $63,000. They witnessed their portfolio jump massively on this massive short liquidation that took place back here in late August. And those holders are sitting on a large amount of unrealized gains. And many of them are going to want to lock in profits, which is why Bitcoin has been going through this correction over the last month and a half. And we have said many times that this correction had nothing to do with panic and was nothing more than regular routine, frankly boring profit taking. There wasn't any panic. This was just people selling because they wanted to lock in gains. Well, now that has changed. What has happened over the last 48 hours on Binance has changed this correction from being one of routine profit taking into being one that is panic driven. But is this actually going to cause a much larger drop? I actually personally don't think so. I think what's going to take place here is that all of the routine selling that was going to take place over the next month that probably would have driven us back down towards around 72 to $74,000. I think much of that selling that would have taken place in late November or early December is basically just getting pulled into the now. I think a lot of people that were sitting on their hands thinking to themselves, hm, I want to sell and lock in some of these gains that I got from this entry that I made down around $63,000. I think many of them see this as their opportunity to sell Bitcoin because the fear has been cranked up. the price has gone down. They're scared that they're not going to be able to lock in as high of gains. And so, you see this route where many people that were going to sell anyway are selling. Now, this does not necessarily mean that Bitcoin is going to go any lower than it already would have. It just means that Bitcoin might get there sooner. You see what I'm saying? Bitcoin could have dropped back down to $74,000 in early December, but maybe now Bitcoin drops to 72 to $73,000 in mid November. It does not mean that the drop is fundamentally any larger per se. What it does mean is that the drop might be a little bit quicker. And we have precedent for this. We saw a drop like this take place at the beginning of the last bull market. We saw a major drop take place here in February. Over the course of 18 days, Bitcoin would drop 22%. But following that, Bitcoin would go through a massive bull market, rallying um you know, six, seven times all the way up to its new all-time high. And right now we're seeing Bitcoin do the exact same thing. It's been going through a correction and now it looks like we're going to drop possibly even more aggressively. We may end up seeing this turn into a 15 to an 18% correction. Now, where would Bitcoin drop to? There's a very high likelihood that Bitcoin is going to come in and try and fill some of these fair value gaps. We talk about in our trading education quite a bit what a fair value gap is. Essentially, when you have three candles, the gap between the first candle and the third candle is what creates your fair value gap. And we have three massive ones sitting right here that also show up as points of low trading on our visible range volume profile. These are areas that the market likes to fill. These are areas that like to be tested um as support when you have a fair value gap beneath you. It would not be surprising in the slightest if Bitcoin was able to drop through some of these support levels such as its current support level on the 365day moving average and on the 382 back down to the 0.5 which would also coincide with the 200 day moving average. would not surprise me in the slightest if over the next few days we saw Bitcoin drop back down to $72,000. That would also allow for Bitcoin to drop back down roughly to this uptrending level of support which is constituted by these lows down here extrapolated into the future. And that's actually a very conservative uptrend because if you zoom out, what you'll find is that that uptrend points to only about $125,000 in February of 2028. I think most of us understand and believe that Bitcoin will most likely be well above $125,000 within the next 18 months. So, what we're anticipating is that Bitcoin is going to be able to go through a correction, probably back test down to this level of support, probably back test down towards around $73,800, which is historically a very powerful level of support and resistance. You can see that was the local high here in March of 2024 and the local low here in April of 2025. And I think that Bitcoin will probably revisit that level. So, this is the exact zone that I'm looking at. This zone above this uptrend somewhere right around that level of support. And although Bitcoin was probably going to get there at some point in late November to early December, now it looks like Bitcoin might get there a little bit sooner. But what this means also is this. It also means that Bitcoin very well may be moving in the direction of getting a major bounce on top of the 365day moving average. This moving average right here tells all. And I'm about to show you why it's so important. But before I do, I do want to give a quick shout out to the sponsor of today's video, which would be none other than iTrust Capital. If you have not already, I heavily encourage you to sign up for it with the link in the description box down below because you're going to be getting access to a $100 funding bonus anytime you sign up and deposit capital into the platform and begin investing in Bitcoin and cryptocurrencies for retirement. Make sure to sign up for trust capital as well for their new Q feature, which looks like this. This is an AI formulated quant AI formulated quantitative trading strategy that you are able to invest in and ideally if you if it manages be able to beat market returns which is very exciting. So make sure to check out Iris Capital. Links in the description box down below. But let's talk a little bit about that 365day moving average. How has it played out over the last few years? Well, as you can see, Bitcoin has historically held above the 365day moving average very nicely. You can see a bounce right here and you can see a bounce right here. And you can see a bounce right over here in April and um in April of 2025. And then when we broke beneath the 365day moving average was when we confirmed the bare market. When we broke above the 365day moving average right here was when we confirmed the bull market. And as soon as we confirmed the bull market, we told you guys this is probably going to look kind of silly in hindsight because Bitcoin's almost certainly going to go through a major correction because it looks like it's running out of steam. But what we also informed you of is that that correction would would most likely show you the durability of the Bitcoin bull market. And so the correction that we're seeing right now is doing just that. Instead of making us scared that Bitcoin is going into a new bare market as a result of this hack, instead Bitcoin is essentially building out an underside breakthrough overside test of the 365day moving average. And even if Bitcoin drops a few thousand dollars below the 365day moving average, it's still more or less going to be a bounce on that zone, allowing for Bitcoin to set the momentum that it needs to get the 365day moving average moving to the upside, set the precedent that we now bounce off of it, which is what would help to confirm once again that Bitcoin is in a bull market. Listen, four years ago, we saw an exchange witness a massive solveny crisis. The exchange collapsed. $9.5 billion of customer funds were not safu. Today, a $6 billion hack took place on Binance, arguably a similar size, possibly even larger solveny crisis. And $174 billion worth of assets are safe and are going to be guaranteed by Binance's Safu Fund and by their corporate tre their corporate reserves. This is a sign that the Bitcoin and cryptocurrency space is maturing. And although we have to face what artificial intelligence is allowing to be done in the hacking realm, it is making hackers significantly more sophisticated and advanced. We also want to applaud Binance for being able to keep customer funds safu through this massive hacking event. So good good on them for having the kind of funds in hand to be able to shore up any kind of event that they may weather. And I do hope and pray that they are able to secure any other issues that there might be. One final thing to mention on this is that we do not know what's going to happen in about 24 hours, 24 to 36 hours when Binance opens withdrawals. Will there be a massive route? The question is out there. Will a lot of people move out of Binance? Is this going to have an impact on Binance to the negative? Obviously, a lot of people are very upset with them, even if they're going to continue to have um even if their funds are guaranteed. There are a lot of things that are going to take place over the next few over the next few days, which we're going to have to watch very closely. So, although I am personally looking for a long trade, just be very careful to jump in too quickly because you might be catching a falling knife. um let's make sure that Bitcoin can stabilize a little bit before we go crazy on leverage or anything like that. Be very careful out there because the waters are choppy and it is very possible that we could see a massive long squeeze at some point over the next day or two which could draw Bitcoin very aggressively. So just be very careful if you're an investor. These do present themselves as fantastic buying opportunities because after Bitcoin does start its uptrend, I think that Bitcoin is going to rally back up towards $100,000 and probably leave sub $100,000 behind for good. If you want to see live coverage on all of that as it takes place, you found the right place. So, make sure to hit that subscribe button and subscribe to uh make sure to hit that subscribe button and hit the post notification bell so you'll be updated every single time we post. My name's been Jeff McAfee. Peace.