Binance Hack Sends Crypto Stocks Tumbling as Bitcoin Slips

Shares of publicly traded cryptocurrency exchanges and fintech firms fell sharply after Binance, the world's largest crypto exchange by volume, disclosed a security breach. The hack, which Binance said involved the theft of 7,000 bitcoin worth about $40 million, rattled investor confidence across the digital asset sector. Among the notable decliners were Coinbase, whose stock dropped nearly 5% in early trading, and MicroStrategy, a major corporate holder of bitcoin, which slid more than 4%. Bitcoin itself fell about 3% to $5,550, while other major cryptocurrencies also traded lower. The incident highlights the persistent security risks facing centralized exchanges, even as the industry pushes for mainstream adoption. Analysts noted that while the financial loss was contained, the reputational damage could slow institutional inflows. The sell-off underscores how a single point of failure can ripple through markets, reminding investors that crypto's infrastructure remains a work in progress.