Key Takeaways
- Binance linked unauthorized withdrawals to a compromised laptop; estimated losses range from $2.77B to $6.5B.
- Datavault AI’s 50% stock plunge after losing access to 817.6 BTC highlights corporate custody risks.
- DTCC’s $114T-plus custody network raises questions about how retail investors will access tokenization.
WEEK IN REVIEW
Binance Founder Suggests Likely Hack as Billions in Crypto Leaves Exchange Wallets
Billions of dollars’ worth of cryptocurrency was pulled from the wallets of leading exchange Binance on Thursday, according to onchain data and industry analysts…
Editor’s comment:
Binance’s investigation found that the security incident likely involved a compromised laptop belonging to one of their DevOps engineers. This allowed someone to access a service container and submit unauthorized withdrawal transactions. We still haven’t seen an official number on the losses; they range from $2.77 billion all the way to $6.5 billion. We’ll see how this plays out in the following days, but it’s almost certain that this hack was the biggest of all time in dollar terms.
Kalshi Hits $40 Billion Valuation After Another $1 Billion Raise
Prediction-market operator Kalshi has secured another $1 billion in funding, lifting its valuation to $40 billion, nearly 82% above its $22 billion valuation in May.
Editor’s comment:
For perspective, $40 billion is ostensibly the same valuation as Coinbase, a company that has been around 6 years longer than Kalshi and essentially had first movers’ advantage in the American crypto industry. The rise of Kalshi and prediction markets cannot be understated.
Nasdaq-Listed Firm’s Stock Plunges After Losing Access to Bitcoin, Spotlighting Treasury Risks
The most recent “not your keys, not your coins” incident involving a small Nasdaq-listed company that lost access to its bitcoin and saw its stock crash 50%…
Editor’s comment:
Hot wallets, hardware wallets, centralized exchanges, DATs… There are risks and attack vectors in any way you choose to get exposure to digital assets. A DAT losing their coins on a CEX is a new one that doesn’t have a precedent yet, but might be another thing to think about as crypto treasuries continue to proliferate.
Coinbase Swings to $719M Q3 Profit as Market Share, Subscribers Grow
Coinbase reported a $719 million net profit for the third quarter of 2026, reversing two consecutive quarterly losses as the cryptocurrency exchange…
Editor’s comment:
Notably, about $715 million of Coinbase’s profit came from gains on crypto held as investments, leaving adjusted net income of just $78 million once those are stripped out. Operating income, the profit from actually running the exchange, was $61.7 million, down from $480.5 million a year earlier.
Major Banks Sign on as DTCC Launches Tokenized Securities Service
The Depository Trust & Clearing Corporation has launched a blockchain tokenization service connecting Wall Street’s traditional securities infrastructure with digital markets…
Editor’s comment:
Everyone agrees tokenized stocks and tokenization in general is massive, and the metrics are showing it. However, it’s unclear how the average person can get exposure to the trend when the bulk of it is overseen by the DTCC, on private blockchains like Besu, using assets issued by the biggest banks. It’s almost as if tradfi knew this was coming and tried to corner the market.
