Binance Breach Drives $1.57B in Crypto Liquidations as Bitcoin Falls Below $77,000
A reported $6.3 billion security breach at Binance triggered sharp losses across major cryptocurrencies and roughly $1.5 billion in leveraged liquidations, according to CoinGlass data. Binance suspended withdrawals and said it would cover customer losses, while prices partially recovered by Friday morning.
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Liquidations and Price Moves
Bitcoin fell below $77,000 during Thursday's selloff, reaching an intraday low near $76,400 before recovering, according to crypto.news. Sources differ on the liquidation total: CoinDesk reported $1.57 billion in crypto futures liquidations, while crypto.news cited CoinGlass data showing roughly $1.55 billion over 24 hours. The gap is small and likely reflects different snapshot windows.
By late Thursday, The Block data reported by crypto.news put Bitcoin near $76,664, down about 4.5% over 24 hours. Ethereum fell 5.2% to around $2,190, XRP lost 7% to about $1.21, and BNB dropped 7.1% to roughly $698.65. By Friday morning, Bitcoin had returned toward $78,500 and Ethereum toward $2,240, though both remained below pre-selloff levels.
Who Was Liquidated
Long positions made up most of the losses. According to CoinGlass, about $1.34 billion of the $1.55 billion liquidated was on the long side, with roughly 246,482 traders affected over 24 hours. Bitcoin accounted for approximately $499 million in liquidations and Ethereum $358 million, according to a separate CoinGlass snapshot.
Binance handled approximately $754.6 million of liquidations in that snapshot, close to half the market total. Hyperliquid recorded $251.4 million and Bybit $186.5 million. The largest single liquidation was an approximately $11 million Bitcoin long on Binance. Forced liquidations close leveraged positions automatically, which can add selling pressure during a decline.
The Binance Security Incident
Binance estimated that about $6.3 billion in crypto assets had been affected by a security breach and suspended withdrawals while it investigated. The exchange said it would cover customer losses. It later said approximately $3 billion in affected assets had been frozen with help from industry partners, and that security checks were continuing.
Blockchain analytics firms TRM Labs and Elliptic linked the attack to North Korea-associated hackers. Binance had not publicly identified the attackers in the initial reports. The $6.3 billion figure is the exchange's estimate of affected assets as reported in these sources; the frozen amount and attribution remain attributed to the analytics firms and the exchange, not independently verified in the material reviewed.
Broader Market Context
The selloff came against existing concern over US monetary policy. The Federal Reserve kept rates unchanged at 3.75% to 4%, and two officials favored a rate increase, according to crypto.news. Uniswap and Aave each fell around 11% on Thursday, and Solana slipped toward $95 while Dogecoin traded near $0.075. Some short sellers were caught by the rebound: short positions made up $57.3 million of the $85 million liquidated during one four-hour period on Friday.
Why It Matters
For Traders
Leveraged long positions were the bulk of forced closures, so funding rates and liquidation levels on major venues deserve close watching as withdrawals remain suspended.
For Investors
A custody incident at the largest exchange by liquidation volume raises counterparty risk questions that could persist well beyond the immediate price moves.
For Builders
Exchange-level breaches affecting large asset pools argue for stronger withdrawal controls, multisig custody, and clear incident disclosure in any product built on centralized venues.
This article is for information only and is not financial advice. Read the full disclaimer.
