Analysts urge investors to buy crypto stocks after $6.3bn Binance hack
Cantor Fitzgerald and TD Cowen say the market recovery remains intact despite a security breach that saw $6.3bn taken from the world's largest exchange.
Key takeaways
- 1Analysts from three Wall Street firms advised buying crypto stocks on the dip.
- 2Tether froze $971m in USDT linked to the hack on 29 October.
- 3Binance is working with the FBI and Secret Service to investigate the $6.3bn loss.
Analysts at Cantor Fitzgerald, TD Cowen and Compass Point urged investors to buy crypto stocks on Friday following a $6.3bn hack at Binance. CoinDesk reported that these firms believe the breach is unlikely to stop the broader recovery of the digital asset market. They suggested that the price weakness caused by the incident presents a buying opportunity for shares in the sector.
Binance is currently working with the FBI and the Secret Service to investigate the loss. Tether froze $971m in USDT linked to the suspicious onchain activity on 29 October. Coinbase CEO Brian Armstrong said his team is assisting with the investigation, according to earlier reports from YourKhabri.
Binance is the largest cryptocurrency exchange by volume and its security is a central point of focus for the industry. Elon Musk commented on the situation on 29 October, stating that every day is a zeroday for security. This follows a period of recovery for crypto prices after a long downturn.
The market is now waiting for an official confirmation of the breach from Binance. The exchange has not yet confirmed the specific details of the security failure despite the ongoing federal investigation. Analysts will monitor whether the $971m in frozen assets can be successfully recovered to reduce the total loss.
Also reported by
- ZachXBT
- The Block
- Boss Bot News
- CoinGape
- Degen News
- Coinpedia
- Watcher Guru
- Decrypt
- Cointelegraph
- Bitcoin Magazine
- CoinDesk
- The Defiant
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.