Crypto shaken after Binance hack; Wilmar discloses sales to firms in haze probe: Markets this week

In this column, ST’s business correspondents unpack the latest developments in Singapore and global markets during the week – and explain what they mean for investors.

Bitcoin fell about 5% over 24 hours since the Oct 29 incident, while Ether lost about 5.7%.

SINGAPORE – A multibillion-dollar hack at cryptocurrency exchange Binance shook the industry this week, sending prices lower amid concerns over the safety of investors’ assets on trading platforms.

Bitcoin fell about 5% over 24 hours since the Oct 29 incident, while Ether lost about 5.7%. Both extended their declines on Oct 30 before recovering some ground. On Nov 1, Bitcoin was trading at around US$77,450, while Ether was US$2,249.

About US$6.4 billion worth of cryptocurrencies were stolen on Binance within 30 minutes, with attackers linked to North Korea draining Binance’s internet-connected “hot wallets”, then rushing to exchange stolen stablecoins for cryptocurrencies such as Ether.

Unlike stablecoins, whose issuers can freeze assets, Bitcoin and Ether have no central issuer able to block their movement.

Approximately US$2.8 billion in stablecoins has been frozen by investigators, law enforcement agencies and stablecoin issuers so far.

In a video circulated on social media on Oct 30, Binance co-chief executive Richard Teng said the exchange has been working non-stop to recover the stolen assets, and added that it had reserved more than US$6.4 billion of its own money to cover all losses.

Teng said customer assets were safe and would not be used to cover the losses, and attributed Binance’s ability to absorb the losses to retained earnings and reinvestment into the business.

He added that withdrawals from the exchange, which have been suspended pending a security overhaul, are expected to resume by Nov 1.

In Singapore, the Binance.com trading platform operates outside the Monetary Authority of Singapore’s regulatory safeguards.

MAS placed the platform on its Investor Alert List in September 2021, warning that it was not regulated or licensed to provide payment services here. It also ordered Binance to stop providing such services in Singapore and cease soliciting business from residents.