Binance Hackers Convert Stolen Tokens to $124M Bitcoin
Blockchain analytics firm Elliptic has traced the movement of stolen crypto assets from the Binance hack, revealing that hackers have swapped a portion of the tokens for approximately $124 million in bitcoin. The conversion, which occurred in the days following the breach, represents a significant effort by the attackers to obscure the origin of the funds. Elliptic’s findings, reported on November 6, 2026, highlight the ongoing cat-and-mouse game between exchanges and cybercriminals.
The hackers likely used decentralized exchanges and mixing services to convert the stolen tokens into bitcoin, a common tactic to break the audit trail. However, Elliptic notes that little of the stolen crypto has likely been cashed out into fiat currency, suggesting that the attackers are still holding the assets or waiting for a more opportune moment. The exchange, Binance, has been working with law enforcement and blockchain analysts to freeze the stolen funds.
$2.85 Billion Frozen as Exchange Plans More Withdrawal Reopenings
In a parallel development, Binance has announced plans to reopen withdrawals for additional cryptocurrencies, following the initial reopening of bitcoin withdrawals. The exchange had suspended withdrawals after the hack, which resulted in the theft of various tokens. According to Elliptic, approximately $2.85 billion worth of stolen crypto remains frozen, preventing the hackers from accessing the full haul. This frozen amount represents a significant portion of the total stolen funds, underscoring the effectiveness of rapid response measures by exchanges and analytics firms.
The frozen funds are likely held in wallets controlled by Binance or flagged by analytics firms, making it difficult for the hackers to move them without detection. The exchange’s decision to gradually reopen withdrawals suggests that it has regained control over its security infrastructure and is working to restore normal operations. However, the timing and scope of the reopenings will be closely watched by traders and investors.
Market Reacts: Bitcoin Holds at $75,731 Amid Security Concerns
The news of the hack and the subsequent conversion of stolen tokens to bitcoin has not significantly impacted the broader crypto market. As of November 6, 2026, bitcoin (BTC) is trading at $75,731.04, down 0.31% on the day, according to Massive. The relatively stable price suggests that the market has absorbed the shock and is focusing on other factors, such as regulatory developments and institutional adoption.
Ethereum (ETH) and other major cryptocurrencies have also shown resilience, with no major sell-offs observed. The hack, while large, is not unprecedented in the crypto space, and investors have become somewhat desensitized to such events. However, the incident serves as a reminder of the security risks inherent in centralized exchanges and the importance of robust cybersecurity measures.
Elliptic’s Role in Tracing Stolen Funds
Elliptic, a leading blockchain analytics firm, has been instrumental in tracking the stolen funds. The firm’s analysis provides valuable insights into the hackers’ methods and the effectiveness of anti-money laundering (AML) measures. By identifying the conversion of stolen tokens to bitcoin, Elliptic enables exchanges and law enforcement to flag suspicious transactions and potentially recover the assets.
The firm’s report also highlights the challenges of tracing funds that have been converted to bitcoin, which can be more easily mixed and laundered. However, the fact that $2.85 billion remains frozen indicates that the attackers have not been able to fully liquidate their holdings, thanks to the collaborative efforts of the crypto community.
What to Watch: Binance’s Withdrawal Schedule and On-Chain Movements
Investors and traders should keep an eye on Binance’s announcements regarding the reopening of withdrawals for other cryptocurrencies. The exchange has not provided a specific timeline, but any delays or issues could signal ongoing security concerns. Additionally, on-chain data from Elliptic and other analytics firms will be crucial in monitoring whether the hackers attempt to move the frozen funds or convert more tokens to bitcoin.
The key number to watch is the $2.85 billion frozen amount. If this figure decreases significantly, it could indicate that the hackers have found a way to bypass the freezes or that Binance has unfrozen funds for legitimate users. Conversely, if the frozen amount increases, it would suggest that more stolen assets have been identified and secured. The next major update from Elliptic or Binance will provide clarity on the situation.
Industry Context: Crypto Security in 2026
The Binance hack is one of several high-profile security incidents in 2026, a year that has seen increased regulatory scrutiny and technological advancements in crypto security. The Golden Gate Bitcoin Conference, held on November 6-7, 2026, in Kentfield, California, and the Bitcoin Korea Conference, taking place on November 7-8, 2026, in Seoul, are expected to address these issues. Industry experts will discuss best practices for securing exchanges and protecting user funds.
As the crypto industry matures, the lessons from this hack will likely inform new standards and regulations. For now, Binance’s handling of the situation and Elliptic’s ongoing analysis will be critical in restoring trust and ensuring the integrity of the market.
Sources: rss_autopost