Bitcoin fell to an intraday low of $78,297 on October 29 as Binance investigated a possible security issue following large transfers from exchange-labeled wallets. The price stabilized near $79,126 by press time.
Binance announced on social media that it was "aware of reports of a potential security issue and are actively investigating." The exchange stated that its security teams were "reviewing all relevant information with urgency" and would provide updates through official channels once information was verified. Former CEO Changpeng Zhao characterized the incident as "a hack on Binance."
According to blockchain tracking data, approximately $2.8 billion in assets moved across five blockchain networks. Whale Alert recorded 28,005 ETH (approximately $64.9 million) and 780 million USDC leaving Binance-labeled wallets to the same new address. The receiving address subsequently forwarded 195,460 ETH (approximately $449 million) to a second address. Analyst Spreek noted that the contract call behind the activity was funded by an address linked to Tornado Cash.
Stablecoin issuers responded quickly. Tether CEO Paolo Ardoino confirmed the firm froze approximately $1.57 billion related to the incident, while Circle froze about $823 million.
The cryptocurrency market experienced significant liquidations during the 24-hour period. CoinGlass reported nearly $1 billion in total liquidations, with Bitcoin accounting for $289 million and Ethereum for $236 million. More than 82 percent of losses in both assets were tied to long positions.
Bitcoin was already under pressure before the reported incident, having traded below $80,000 earlier on October 29 amid a broader technology-stock selloff and following the Federal Reserve's October 28 policy decision.
