Binance Hacked: $6.3 Billion Stolen in Largest Crypto Theft in History
On October 29, 2026, Binance, the world's largest cryptocurrency exchange, reported a major security breach. Attackers moved about $6.3 billion out of Binance wallets starting around 20:05 GMT.
It is now the biggest theft in the history of cryptocurrency. The hack caused panic across the USA and China, with Bitcoin falling below $80,000 to $76,460 and over $1.5 billion in liquidations in 24 hours.
Binance said it has frozen about $3 billion on-chain and has set aside more than $6.34 billion of company funds to cover all user losses. The exchange plans to reopen deposits and withdrawals on Sunday, November 2, after releasing proof of reserves.
How Does Crypto Exchange Insurance Work in the USA?
This hack is the reason why crypto insurance is now a $1 billion industry in the United States.
In the USA, big exchanges like Coinbase, Gemini, and now Ripple National Trust Bank pay for special insurance called "crime insurance" and "custody insurance."
- What it covers: If hackers steal crypto from the exchange's hot wallets, the insurance company pays back the users.
- What it does NOT cover: It does not cover you if you lose your own password or if Bitcoin price crashes.
- How much it costs: An exchange like Coinbase pays $10 million to $30 million per year to insure $5 billion worth of crypto. That is about 0.2% to 0.6% of total assets per year.
How Much Do Americans Pay to Insure Their Own Crypto?
For individual investors in the USA, personal crypto insurance is now very popular after the Binance hack:
- For $10,000 crypto: $150 - $300 per year
- For $100,000 crypto: $1,200 - $2,500 per year
- For $1 million crypto: $12,000 - $25,000 per year
Companies like Lloyd's of London, BitGo, and Coinbase Custody offer this insurance if you store your crypto in an approved cold wallet.
What Should You Do Now After the Binance Hack?
Financial advisors in the USA are giving three rules:
1. Do not leave all your crypto on one exchange. Use at least two exchanges and a private cold wallet.
2. Check if your exchange is insured. In the USA, regulated exchanges must publish their insurance certificate.
3. Consider personal insurance if you hold more than $10,000. The $200 per year cost is small compared to losing everything.
With the US midterm elections on November 3 and the Federal Reserve holding rates at 3.75% to 4.00%, crypto insurance and regulation are now major topics for the next US Congress.
Binance has promised to release a full technical post-mortem after reopening. Until then, insurance is the only thing protecting millions of crypto users worldwide.
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