Coinbase leads crypto stock selloff following $6.3B Binance hack

On Friday, October 30, 2026, Coinbase Global led a sharp sell‑off in crypto‑related equities after Binance disclosed a $6.3 billion security breach. Coinbase shares dropped more than 13 percent, while Circle Internet Group fell over 9 percent and Strategy (MSTR) slipped about 8 percent. The tumble came a day after Binance confirmed the theft, halted withdrawals and pledged to cover all losses from its own funds.

Background

The hack at Binance, the world’s largest cryptocurrency exchange, was announced late Thursday and quickly identified as the biggest crypto theft in history, with $6.3 billion in assets taken and roughly half of those funds frozen on‑chain. Binance’s co‑CEOs Richard Teng and Yi He said withdrawals would resume within 48 hours after a rigorous rebuild of the withdrawal service. The breach followed earlier incidents, including a February 2025 attack on ByBit that stole $1.5 billion. The crypto sector has been under pressure from declining digital‑asset revenues and a broader technology‑sector sell‑off, amplified by concerns over AI‑driven spending. In this environment, publicly listed crypto firms such as Coinbase, Circle, Strategy, mining operator IREN and blockchain services firm Figure Technology Solutions have seen their stock prices tumble. The incident also triggered coordinated freezing of stablecoins by issuers Tether and Circle, and highlighted ongoing resistance from traditional financial firms to tokenized share offerings.

What happened

Coinbase reported a 34 percent year‑on‑year decline in third‑quarter 2026 net revenue to $1.16 billion, prompting its shares to fall more than 13 percent, as noted by Cointelegraph and BitcoinKe. Circle Internet Group’s stock dropped over 9 percent, and Strategy’s shares fell about 8 percent, according to Yahoo Finance data cited by Cointelegraph. Mining and data‑center operator IREN lost more than 10 percent, while Figure Technology Solutions shed roughly 9 percent, also reported by Cointelegraph. Binance confirmed that hackers stole about $6.3 billion, the largest crypto theft on record, and that roughly $3 billion of the assets have been frozen on‑chain, with over $2 billion in stablecoins among them, as detailed by Yahoo Finance. Binance co‑CEO Richard Teng pledged on social media that the exchange would cover all hacked losses from its own funds, and Yi He said withdrawals should resume within 48 hours after rebuilding the service. Tether’s CEO Paolo Ardoino said the firm froze more than $1.567 billion of USDT, while Circle’s CEO Jeremy Allaire reported freezing $800 million in coordination with law enforcement. Bitcoin’s price slipped 5 percent to just under $77,000, ether fell 4 percent to around $2,200, and Binance’s native token BNB dropped more than 6 percent, as described by Yahoo Finance.

Market impact

The sell‑off saw Coinbase’s stock tumble over 13 percent, Circle’s share price slide more than 9 percent and Strategy’s decline of about 8 percent, according to Yahoo Finance data referenced by Cointelegraph. IREN’s shares fell more than 10 percent and Figure Technology Solutions dropped roughly 9 percent. Bitcoin’s market price fell 5 percent to below $77,000, while ether lost 4 percent to around $2,200 and BNB slipped over 6 percent. Binance reported that about $3 billion of the stolen assets are frozen, including over $2 billion in stablecoins. Tether froze more than $1.567 billion of USDT and Circle froze $800 million of its USDC, as disclosed by their CEOs. The broader technology sector also experienced a sell‑off, adding to the pressure on crypto‑linked equities.

Why it matters

The hack underscores the vulnerability of crypto exchanges to large‑scale security breaches, shaking investor confidence across the sector. The immediate reaction—sharp declines in the stock prices of Coinbase, Circle, Strategy and other crypto‑linked firms—demonstrates how tightly equity valuations are linked to perceived security and operational stability of the underlying platforms. The freezing of billions in stablecoins by Tether and Circle highlights the systemic risk that stablecoin issuers face when large thefts occur, potentially affecting liquidity in the broader market. Moreover, the incident arrives amid a technology‑sector downturn and heightened scrutiny of AI‑driven spending, compounding pressure on crypto firms already grappling with declining digital‑asset revenues. The coordinated resistance from major financial and tech companies to tokenized share offerings further illustrates the growing divide between traditional finance and the crypto industry, a tension amplified by the Binance breach.