Bitcoin Hit By Crypto’s Biggest Hack Ever Transcript

00:02 Welcome back to Cryptos Are Us. I am George. We're all George. Welcome to another market open stream. Happy Friday. Is it happy Friday today? Probably not. Binance, the largest crypto exchange on the planet, just had the biggest hack ever. over $6 billion dollar. So, I know most of you guys already know that, but it got I got a few other stuff to talk about, some updates with it.

00:37 And then also, you know, US market is completely red today due to bad earnings. So, today's not a happy Friday. It's a red Friday, but let's talk about it. All right, let's do it, guys. Let's do it. Welcome, welcome, welcome. So, unfortunately, you see we are starting out a day right around $77,000 and yesterday we were, you know, 80 81, right? On this grand scheme of things, it's not so bad.

01:13 But obviously, I've been saying 80, you know, holding 80K has been awesome. It's a good psychological level to be above. And unfortunately, we broke below when we had this big hack happen, right? And it doesn't help that some of the other macro things or earnings is bringing things down as well. But, uh, today we're starting out, oh, NASDAQ was minus 700, minus 600 for NASDAQ.

01:41 I I'll get to that in a little bit. Let's jump right into this, though. All right. So yesterday in the middle of the afternoon, I I saw an X, you know, this this site I never seen before or this account I never seen before, reported that, hey, according to our AI, something's fishy with all these hot wallets from Binance, which are I guess the deposit wallets.

02:07 They're transferring all their crypto somewhere. Now, they didn't know if this was malicious or Binance just moving some funds. And then after $2 billion dollar was moved, then everyone else started paying attention and Binance said, "Yeah, we're we're getting hacked." Um, and that number kept going higher and higher and higher. It went to five billion and now the overall number is 6.3 billion.

02:39 This is no joke. This this could be the biggest theft ever. Not just cryptocurrency theft, but like in terms of just theft overall, could be the biggest ever in history. Um, now Binance, now CZ is is so funny about CZ because he's no longer the leader. He's not the CEO. He's not the leader of Binance supposedly, okay? But he's the one that everyone looks at.

03:08 Um, you know, he was tweeting yesterday about, "Yeah, don't worry. You know, we Binance will get covered even though I don't work for Binance." Like, okay. Um, I guess he has inside for information or he's still the chairman. I don't know. But he's definitely still with Binance. And I was wondering how high does the number have to go before they say don't worry about it.

03:33 Uh probably they will never say that until they go bankrupt. But they said their safe food money which is secure asset fund for users will fully cover this. So there's no problems. Okay. They I don't know how much they have in there could be tens of billions of dollars but still losing 6.3 billion is no joke. Now, Tether and Circle have frozen a lot of the USDT.

04:05 So, some of it will be recovered, but a lot of it will not. Um, and in terms of who did it, of course, everyone's pointing to North Korea, their Lazarus group, very sophisticated hacking group, right? They were the ones behind some of the largest crypto hacks in the past. um all the bridges that we saw that was hacked for like 600 million or 100 million or whatever.

04:35 It's all due to Lazarus. So, uh or at least we're pointing fingers to them. I don't know. They they haven't really come out on any of them and and claimed credit. It's just that people are equating to it. Um, now getting all that money out is tough because now all the exchanges are freezing. You know, all the stable coin makers are freezing. Uh, a lot of things being freezing.

05:03 They're frozen. But Binance, their hackers split 1.4 billion of Bitcoin into 19 wallets that no one can freeze, but they're just sitting there. Can you ever cash it out? Can you ever spend it? That's the question, right? So, don't know. Don't know because, you know, in order to cash out, you need to send that Bitcoin somewhere or if you're going to try to spend it, it's all going to be tracked right onchain.

05:38 It's really hard. you have to like try to mix it with tornado cash or something. But when it's that many and that much in amount, it's it's just really hard to try to convert swap and use tornado swap or any other swap to like kind of mix it. Um, so yeah, that's the thing. So most of it is just held in wallets just not doing anything, right? But it's still there.

06:08 Uh obviously it caused a lot of FUD. Institutional investors probably uneasy probably some retail investors you know a lot of people are feeling uneasy. Um yeah I mean when when a large hack like this even myself I was wondering is this something bigger? Did they find an exploit in a chain maybe that that would allow hackers to hack other exchanges, right?

06:39 Like I I was thinking that too. So I don't you know it's the right way of thought. I right now it seems like it's just only limited to Binance, but there was exploit uh or this one that may have amplified losses. So there's an improvement protocol on 7702 uh with Ethereum. Um they have I guess I don't know the technicals but it does allow wallets to be drained or could be drained.

07:15 And this is this is an improvement protocol. This is built in within Ethereum. So, a lot of people thought that this was the reason why a lot of the alts and Ethereum was hacked from Binance, but it seems like it wasn't, but it could have amplified things. So, like things like this, you know, makes you wonder, should you trust any of the exchanges at all, right?

07:33 It's just it's just really tough. And uh and even a you know, they were affected. I think a themselves are fine. their their you know their smart contracts is fine but the hackers borrowed 44.6 million through a with stolen funds right so yeah a lot of bad stuff a lot of bad stuff again we're in October people have reminded me that last year something similar happened.

08:17 Uh some of you guys remember that 1010 day where we had this biggest liquidation event ever also led by Binance. I forgot the the the situation, but something happened caused some kind of deep pegging and then it caused a whole lot of people to panic sell and then it escalated from there and I forgot exactly all the details, but two years in a row something big happens and it's due to Binance.

08:55 you make your own opinion about that. All right. Outside of this, uh the US market also isn't helping the situation. Okay. Yesterday, Amazon reported, Intel reported both came in lower than expectations and right now Intel's down almost 30%. Amazon's recovering a little bit minus 2.8% 8% but still neither one impressed investors. So that's what's contributing and Google had earnings that wasn't good.

09:28 So that's why NASDAQ is looking so red right now. So this also isn't helping the situation. What's also not helping is the war. Iran just takes four tankers and the US and you know Trump still deciding what to do something now or wait until midterms is over which is only in a week right I think we're go wait but still can you just let them do whatever they want right now right they're being the US is being tested so this also isn't helping things.

10:11 Yeah, we're still at minus 500. Um, all right, moving on. We did have a positive inflow yesterday, plus 17 million, which is a positive. Uh, not so much for ETH, not so much for Soul, a little bit for XRP, but yeah, right now the strength is in Bitcoin for sure. ETH and Soul have gotten a little weaker, especially after yesterday. A lot of the alts got weak.

10:40 People sold off. I don't know if the hackers were able to sell anything. I think if they did, it would be much worse. But right now, uh, Bitcoin is still holding the strongest. Uh, Binance reserves still holding. Yeah. And like I don't know how much they really have in their reserves because a lot of people said that oh you know they have 100 and something plus billion you know that that that's not their crypto that's like all the users and institutions and stuff right so it's not like they can just give out a 100

11:16 billion worth of crypto uh no but I I would like to know I'm curious to see like how much they have in their safu you know reserve whether it's like 10 billion ion or 20 billion don't know uh what else some good news and not so good news strategy okay is looking to buy more Bitcoin obviously and more strate they just announced yesterday the daily daily dividend thing um however I saw this their CFO just resigned right after a quarterly report, right?

12:04 Normally now now Andrew Kang said it's due to personal reasons but normally speaking when you have a high executive especially in finance or controlling finances or crunching the numbers like a CFO when they all of a sudden depart and it wasn't announced ahead of time that's usually not a good sign something is going on, right? Don't know what it is, but it's not a good look that he resigns right after a quarterly report.

12:44 Like, he could have waited a week, could have waited a month, he could have done it a month ahead of time, but to to resign right afterwards is not a good look. So, I don't I don't know what's going on. I mean, obviously Sailor does and he's doing a lot of complex leverage stuff with his products, with his shares and strategy, but uh we'll have to see.

13:10 We'll have to see. Uh what else? Coinbase bought another 643 Bitcoin. So far, Coinbase seems to be secure. No hacking attempts, nothing out of the the usual, which is good because you know what? Binance overshadowed other hacks that happened. Uh we're just getting hacked left and right right now. Like it's it's actually kind of crazy. Uh I'll get to I'll get to that in a little bit.

13:41 But uh we do have we do have good long-term holders. They're still staying strong despite all the selloffs, despite the liquidations. Right. Yesterday was one of those big ones, 1.63 billion. So, one of the largest liquidation days ever once again. And it's due to this hack, due to macro conditions, due to earnings report. You put it all together, you had a lot of people lose a lot of money or all of their money.

14:25 So again, when you play with leverage, you got to be careful. But it does. The good thing is normally when we see something like this, when we see like a wipeout, a clearing, okay, that sets us up for recovery. So, normally speaking, that's what happens. And if you're a chartist, this is actually pretty normal. Coming up from 2022's bottom after we first hit like 34,000ish or something or 30,000ish, we weren't able to break it and we actually went back down to this 100week EMA as a support a couple times before we

15:09 finally broke through. And that's exactly what happened. And some people have pointed out that we probably will hit it. We'll probably retrace back down. And that's exactly where we are. So, some charters will say this is completely normal and why we're actually holding where we are. And a reminder that every time we do have a major collapse or reset, right, or a hack, we then recovered and made a new high afterwards every single time.

15:47 So, this goes to show you Bitcoin is resilient. It does not care about what's going on. It may be affected short term, but long term it just keeps on going and going and going and going. And most people don't even remember these. All right. I I do I but I I forgot like I forgot about buy. They were hacked. It was huge last year. FTX obviously fell, right?

16:19 Binance again, Coin Check, Bitfinex, Mount Gox, O the list goes on and on and on. Uh yesterday also Poly Market got hacked. So I saw some people say that they lost a lot of money. Uh it's due to some thirdparty breach. Some people just got their their wallet drained and uh their entire, you know, events got got sold off or whatever. So, yeah. So, even Poly Market got hacked.

16:50 Maybe not fully, but I know a lot of people were talking about they lo they lost money on Poly Market. So, I don't know what they're going to do if they're going to um if they have reserves that they could give out. I I don't know. But yeah, I mean people just overlook this because of what happened with Binance, but like right now we're getting hacked left and right.

17:12 Even Treasure says that some of their hardware wallets, you know, we talked about how Ledger, the ones sold through Cryptobillies, they had this hardware implanted, so people lost their money. So, treasure is also saying that maybe the ones that sold by Cryptobillies may also have it inside. So, if you're in like Asia and you bought a treasure or ledger, not from the companies themselves, you probably should and just get to a new wallet.

17:46 Don't don't don't risk it. Okay. So, yeah. Yeah. Today is just one of those days. Not a not a happy, happy, cheerful Friday. All right, let's do some Q&A. Well, if you look at it this way, doesn't look so bad. We basically fell down. We fell down to a September level which kind of sucks, right? We were definitely trying to breach 87. That would have propelled us into the 90s, but on grand scheme of things, we're still way better.

19:34 Way better than the months beforehand where we were stuck in the 60s, right? But yeah, stocks not doing well, man. Man, if you look at Coinbase is down 12%. Coinbase didn't get hacked, but man, they're being sold off. I mean, the US market is so ugly right now. Micro Strategy is down 10%. Robin Hood is down almost 8%. All right. Like Intel is down like godly amount 30%.

20:10 Basically all of their gains have been wiped out. Like all this wiped out. Um the US market is just looking so bad right now. And that doesn't help the situation. So now soul is down about 6% today. Bitcoin is down about four and a half, a little bit less. But like I've been saying, after every liquidity event, after every dip, every scary moment, we recover.

21:03 We recover. We always do. It's just that it sucks at the moment. And of course, we have to wait longer. And it does seem like there's no chance of us turning green for October unless things flip really fast between now and tomorrow. So, it may we may have to continue the tradition of a red October when normally it's green. Last year, we had the same thing.

21:31 We had a huge liquidation event. This year we have a huge hack both from not from but well no it is I think both from Bachmann's um and that's uh that's unfortunate. So I guess we'll just have to wait until November see what happens leading up to midterms and what happens afterwards. Uh George, you did warn about keeping all crypto hot wallets after this hack.

22:26 It's best to uh move more to cold wallets and hot wallets. Yeah, I mean cold wallets always going to be the best. Okay. But there are there are things you need to worry about too, right? Obviously your your secure your uh your private private key or your recovery phrase. Those are the most important, not the password. Um and you got to make sure that you don't have a device that was sold by a third party, which also is concerning.

22:57 So as long as you play it safe and you do it right, keep it offline. That's why it's called cold wallet and your phrase secure, you're good. You're good, right? It's still going to be better than exchange. Um, I mean, this case, if you're go trust exchange, you trust the bigger ones because they have do they do have reserves and they can, you know, pay people off, but still, you know, they Binance stock withdrawals.

23:29 So, if you want to withdraw, you can't. If you wanted to spend it, you can't. Some people have had their accounts suspended. You know, there are trade-offs, right? Well, Josh sent me this. Don't know what this is about. Elon for some reason trolling a multi-billion dollar hack and sees he's threatened to full stack dump a share that helped him buy Relax.

24:34 Well, Elon didn't really troll, but you know, Elon is what Elon is. So CZ says that, you know, this is one of his tweets. CZ said that losses will be a little bit higher, but we'll cover. And then of course people can't help but equate CZ with SPF. And there was a lot of trolling like that and and pictures and stuff. And then Elon did his little smiley face.

25:01 So I think Elon just thought that was funny. And then CZ got pissed off. Uh, our SpaceX shares from our 500 million investment in your Twitter takeover are worth more than a billion. Would appreciate it if you show a little support. So CZ is not really threatening to dump, but saying, "Hey, without me, right, you would have never been able to buy Twitter and then never been able to I don't know never but without that investment he probably would not have been able to buy Twitter because Elon need to borrow a lot of

25:49 money for that and then obviously that led to XAI then merged with SpaceX but basically CZ is like stop it stop it I'm not a normal normal person I guess right I'm actually a large investor in your company but see you see you see how it's worded are SpaceX shares so is that Binance's or his because CZ still maintains that he's not with Binance he's no longer in control right when he went to uh prison for four months or however many months.

26:39 He said he had nothing to do with Binance again. Uh and then all of a sudden when he got released, he is with Binance again. I I don't know. Like I don't know his real relationship. Obviously, he's the man that everyone looks at, but like his true power pro probably he still has all the power. He's just trying to downplay it, I'm guessing. Uh the part about the hack that about the part about the hack was bypassing Binance signatures that approved transfers.

27:51 I don't know. There's still a lot of there's still a lot of speculation on what happened. Some people think that it was due to some dev's dev laptop that was that was used or his credentials was used and whether the private key you know because there was many many many many wallets hacked. It wasn't just one. So, was it like did they share somehow a key to all these wallets, which I don't even think it's possible, but um yeah.

28:28 Yeah. I don't know. There's there are just a lot of speculation on what what happened. So, I guess we'll have to see when the full investigation is over and they report it. Today is still looking pretty pretty nasty. Oh, they even reported this on CNBC what I just showed you guys. Sometimes it just seems like Eli does not give a f about anything. He'll just comment on everything without really thinking about it, which is good and bad.

29:45 I mean, Elon says a lot of on X, which people love, right? And he like fights with everyone. Uh, but the the the the one thing you got to respect Elon for if you're even if you're not a Elon fan is the fact that he will allow his own enemies to use his platform. That's the thing. It's like no matter what, no matter who he hates, he still allows him to use X, right?

30:18 Like for example, Sam Alman of Open AI. Elon hates him. Hates him. But Sam is still tweeting out all the time and Chad GBT and Codex, you know, their team members are on X all the time, right? So that's the one thing that you you really got to respect Elon for. It's like even the people that he hates, his enemies, he allows them to use his platform, which is which is crazy.

30:51 Josh says, "I don't know. I don't get how Elon apparently works so much and how he tweets so much. Yeah, I mean he he you know he must be so addicted to his phone. He he like randomly tweets and replies to random people about all things. There's no need for him to do that. I mean X is doing well. Uh, I know he wants to like push it further, but yeah, he normally just comments on AI stuff now, like all things AI, not really crypto or Doge or anything anymore.

32:16 Uh, blockchain game dev ass. Every cycle has a black swan. Do you think this is it? Yeah, I would say so. If we somehow have a worse event than this from now to the end of the year, man, then it's just not our year. This is the biggest hack in crypto history. And luckily, luckily, it's with exchange that seem to be able to pay it, right? Um or withstand it, I should say a better word for it, that they have the reserves to actually cover it.

32:50 If this happened to some exchange that that was not able to, this would have been a lot worse. A lot lot worse, right? But it is Binance. But for sure, if you guys haven't picked up on what's been happening, hacks are only going to get worse. I've been covering that. It's the good and bad about AI, I guess. um you know these hackers are using AI and you know I don't know how many agents they're running at all times to find vulnerabilities and to hack systems right we're seeing exchanges get hacked left and right we're

33:34 seeing wallets get hacked left and right in crypto and there's going to be more targeting crypto because crypto you can instantly if you get through you can instantly take you know the value out of it Right. Um, but we also saw hacks with traditional hacking with web two companies like like database companies and front end backend companies um ones that millions and millions of people use.

34:06 I mean, you're seeing them left and right. And this is only going to accelerate as better models come out. So all these companies, everyone in crypto, you know, hopefully they are on top of it or trying to stay on top of it, utilizing AI to counter these hacks or to make their products better because it's going to get worse. It's going to get a lot worse.

35:03 When stocks become tokenized, will hackers be able to steal them from wallet? Yeah. Yeah. Tokenized stocks are just crypto. So if your wallet gets hacked or exchange gets hacked, they could definitely be stolen and sold off, right? Now we got 1,600 people in here. I know it's not for good reasons, but uh seems like the hack is over. 6.3 million is the million billion is the damage caused by Lazarus.

36:11 and uh and they're still investigating how it happened and hopefully they get to the bottom of it and stop and share it really to all the exchanges and make sure that this doesn't happen. We wouldn't want to see this happen to another exchange like Coinbase or Kraken or Gemini or I don't know what else, Crypto.com or Robin Hood, you know, any of these other exchanges or brokerages.

36:37 We certainly don't want to see them get hacked. Binance, we could kind of just accept because I think most people know they could cover it no matter what. But other exchanges, I'm not so sure they can. How about Elon buying Binance? He doesn't have enough cash for that. Binance is if you were to devalue Binance, it'll it'll probably be a trillion dollars.

37:12 Like that's how big they are. Um, so yeah. Anything positive today? Not really. I updated Front Line more, but I don't know if anyone here really wants to see that right now. But uh I have been updating front line and uh and working on Clash World CWD and FPS. So there is that. But uh yeah, I don't I don't know there's anything else. Positive. Positive.

37:50 Can you make options of cell phones work with real voice communication? Probably not. No, I'm not. That's too sophisticated. I could do it, but I'm not going to. you could just chat with people. I could build in like Telegram and Discord within the game so you could chat with people. Um, you know, maybe I can make it so that you could get text messages from the game if you wanted to enable that.

38:18 You know, stuff like that would be easy to do. Uh, the US Maybe Lazarus will come for Clash Pad. I I doubt it. It wouldn't be worth their time. It really wasn't. Uh I think they're going after billions, okay? Billions upon billions. There are a lot bigger fish to go after. If you get arrested in class world, will the police have body cameras? No, it's not that sophisticated.

39:55 Okay? It's just like playing GTA. If you get arrested, you get killed, and then you start over. That's it. not gonna be make it so that you go to jail or something. How can this happen after all the securities spicing tuna? I think you're just wondering how does a big company like this still get hacked? Well, that's the the billion-dollar question, right?

40:33 People are trying to figure it out if this was a protocol level vulnerability or Binance made a mistake and left their private keys on a laptop or something else. Like, we just don't know. It may never come out. Even if it comes, even if they discover, they may never like actually publish it because if it was just like a big goof up, it would make them look extremely bad.

40:59 But if it is something that is like something that's very urgent that other exchanges need to patch, hopefully they do just, you know, uh release it and tell all the exchanges ASAP like, "Hey, this is what happened. You guys are probably going to be affected to uh patch this now, right?" I think they're going to do that. But if it's something like really stupid, like a developer's laptop got hacked and all the private keys was t taken from it and that's how they were able to do this, like I don't think they're going to

41:35 release that. All right, guys. That is it. Unfortunately, it's just bad news today. Bad news. Even Circle is selling off. Circle's down 10%. All the crypto stocks are down huge today. But this is what happened. Hackers steal 6.3 billion from Binance. The biggest crypto theft ever. I would say it could be the biggest theft ever. Not just crypto. I can't think of a theft that is bigger than that.

42:33 Other than if you count like maid offs like Ponzi, but that that's not that's a different kind of theft. Um but it's huge. Binance said they'll be able to cover it. They got enough reserves. So no worries there. I think their withdrawals still might be closed at this point. But yeah, this is what happened. And obviously this triggered a lot of selloffs, uh, liquidations, you know, panic, FUD, all this stuff, right?

43:02 And Elon is trolling sort of, and CZ doesn't like that. There are a lot of things going on, but try to stay positive. This is no reason to leave crypto. We have seen situations like this before. Bad hacks, bad black swan events, banks that's going belly up and stuff and changes that go under. But we get through it every single time. Bitcoin picks itself back up and makes a new high.

43:33 So stay strong, my friends. Have a good weekend. Go check out Clash Pad. Go check out Front Line. Go clash. Check out Clash Pics all in the description. All right, have a good one.