Bitcoin edged lower as U.S. law enforcement agencies joined the investigation into the record $6.3 billion Binance hack. U.S. spot Bitcoin ETFs recorded net outflows on Friday, ending a four-session inflow streak.
Bitcoin fell on Saturday as U.S. law enforcement agencies joined the investigation into the record $6.3 billion Binance hack.
At 11:06 ET, Bitcoin was down 0.3% at $77,401.2. It had fallen below $77,000 for the first time in more than a month after news of the attack rattled digital asset markets.
Federal agencies join the probe as blockchain firms point to North Korea
The Federal Bureau of Investigation said it was coordinating with partners to assess the scope of the incident, according to a statement to Bloomberg News on Friday. The U.S. Secret Service is also working with the private sector to recover stolen funds, while the Justice Department said it was aware of reports about the attack but declined to comment on investigations.
Blockchain intelligence firms TRM Labs, Chainalysis and Elliptic pointed to North Korea as being behind the heist. Chainalysis described it as the largest incident in crypto history. Investigators linked the activity to the North Korean hacking group Tradertraitor, with attackers converting $325 million in stablecoins into $285 million in Ether, apparently seeking to move funds beyond the reach of issuer-controlled freezes.
Binance plans phased withdrawals
Binance outlined plans to restore withdrawals in phases following security checks. It said it reserved more than $6.34 billion in company funds to cover losses.
The exchange plans to publish proof-of-reserves data by Monday, November 2.
Spot Bitcoin ETFs post $643.33 million in outflows
U.S. spot Bitcoin ETFs recorded $643.33 million in net outflows on Friday, according to SoSoValue data. The withdrawals snapped four consecutive sessions of inflows between October 26 and October 29, which had attracted about $440.73 million.
Theodora Lee Joseph, an analyst at Finimize, highlighted the irony that recovering stolen crypto assets increasingly depends on centralized intervention, despite Bitcoin being designed to operate without a central issuer. Tether and Circle have frozen $2.4 billion in stolen tokens to assist investigators, while Bitcoin has no central issuer capable of freezing transactions.
Joseph also argued that Bitcoin's weakness reflects challenges to its investment appeal. Down around 10% this year and nearly 40% from its 2025 peak, the cryptocurrency has struggled with higher interest rates and inconsistent ETF demand.
Source: Investing.com
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