Cryptocurrency markets and tech stocks faced selling pressure on Friday after Binance disclosed a $6.3 billion security breach, the largest in the exchange's history. The incident reignited concerns about digital asset security, prompting a broad retreat across the sector. Meanwhile, oil prices climbed as geopolitical tensions in the Middle East escalated, while precious metals and chipmaker Intel also saw significant declines.
Binance Hack: $6.3B Theft Shakes Crypto Markets
Binance co-CEO Richard Teng confirmed that approximately $3 billion of the stolen funds had been frozen on-chain with assistance from blockchain partners. The exchange has pledged to cover customer losses through its Secure Asset Fund for Users (SAFU) and company reserves. Teng attributed the breach to a compromised DevOps engineer's laptop, which allegedly allowed attackers to access a service container and submit unauthorized withdrawal transactions. Binance stated it found no evidence of a private-key leak.
The attack triggered a selloff in digital assets and crypto-related equities. Coinbase shares fell more than 10%, reaching levels last seen in February 2024. Circle Internet Group declined 9.5%, while Strategy lost 7.84%. Bitcoin dropped as much as 4.8% over 24 hours to approximately $76,820.
The incident has also raised questions about recovery mechanisms for stolen cryptocurrency. Stablecoin issuers, including Tether and Circle, have frozen funds associated with receiving addresses, but Bitcoin and Ethereum cannot be frozen through an equivalent issuer-controlled mechanism. Binance has assured customers that their balances remain safe and that it will cover the losses. Investors are now watching the resumption of withdrawals and the exchange's updated proof-of-reserves report.
Oil Prices Surge as Iran War Tensions Intensify
Oil prices climbed more than 2% on Friday, settling at their highest levels since late April as traders assessed the risk of further escalation in the Iran war. Brent crude futures for December delivery settled 2.32% higher at $117.55 a barrel, after touching an intraday high of $118. The more actively traded January Brent contract gained 1.56% to $112.53. US West Texas Intermediate (WTI) crude rose 1.11% to settle at $103.13. For October, Brent gained 13.6%, while WTI advanced 15.2%.
Supply concerns intensified after a tanker was struck by explosive devices attached by a small boat in the Strait of Hormuz, according to the UK Maritime Trade Operations agency. The incident highlighted risks to shipping through the strategic waterway, a major route for Gulf crude and fuel supplies. Meanwhile, Yemen's Iran-backed Houthi militants claimed attacks on Saudi oil facilities, including the Ras Tanura and Rabigh refineries and a production facility in Abqaiq.
Precious Metals Slide as Tech Stocks Sell Off
Gold prices fell to their lowest levels in a year on Friday, while silver, platinum, and palladium also recorded substantial losses. Spot gold dropped 3.44% to $3,881.68 an ounce, its lowest level since October 2025. US gold futures for December delivery settled 3.46% lower at $3,891.10. Silver fell 5.8% to $49.33 an ounce, breaking below the $50 level for the first time in 11 months. Platinum declined 3.68% to $1,438.50, while palladium lost 3% to $976.08.
The sell-off coincided with a sharp decline in technology stocks as concerns about the returns on artificial intelligence investments weighed on market sentiment. Gold has now declined approximately 30% from its January record high of $5,595, amid expectations of higher interest rates for longer and weaker demand in Asia.
Intel Shares Plunge on Weak Q4 Forecast
Intel shares plunged 28% in trading on Friday after the chipmaker issued a disappointing fourth-quarter revenue outlook. The company expects December-quarter revenue of $15 billion to $16 billion, below analysts' expectations of $17.1 billion. The forecast followed third-quarter adjusted earnings of 52 cents per share, beating estimates of 40 cents. Revenue reached $16.51 billion, slightly above the consensus estimate of $16.5 billion.
Intel also expects PC chip revenue to decline in the mid-20% range in the fourth quarter, following a 5% drop in the September quarter. Chief Financial Officer David Zinsner said the weakness in the PC market could persist into the first half of next year. BofA Securities downgraded Intel to Neutral from Buy and cut its price target to $100 from $145. Roth Capital also lowered its rating to Neutral and reduced its target to $70 from $120. Analysts cited manufacturing constraints, weaker PC demand, and competitive pressures as concerns. However, Intel's expanding data-centre business and foundry ambitions remain potential longer-term growth drivers.
This article is for informational purposes only and does not constitute financial advice.
