Binance RECORD $6.3B HACK! 🚨 The WORST Possible Timing

0:00 We are entering the worst hack at the worst possible time. I want to thank our sponsor today, and that is Tangim, where you guys can get into full self custody. Very easy to do your secure crypto hardware wallet. And one of the things about Tangim that I think a lot of people misunderstand with self custody is the ease of use and also the ease of being able to get this set up for you. It's like a credit card works with your phone, always present. Make sure to get a three-card set so you've got a backup. But you guys, of course, can use our link down below. It's going to give you a 10% discount. And they also have several offers from time to time. So always check what's going on over there on the website. This is the

0:39 self-custody to you. So make sure and check it out. Tell them we sent you. Let's just start with this tweet right here. And what we're getting into right now is Intel. Now, I want you guys to pay attention here because there's a lot that is centering around specific earnings that are happening. Intel plunges 30% wiping out $ 100 billion.

0:59 All of this because of what we saw, again, with some of these high performers who have essentially been missing their forecast. This was a Q4 forecast, missed 80% annual growth in its data centers. That was what was happening on the good side. And yet it's still at the same time they were missing on their numbers. And it's not just them. We're talking about This is the worst that we've seen in 50 years. And again, this is on weak guidance going forward. Many people have still been looking at this as maybe an up market. I kind of disagree now. This timing is just not right with what's happening with Binance. We'll get into that in a second.

1:38 But look at this. I mean, we're talking about another $ 850 billion wiped out from the U.S. stock market at open. Now, part of that is because of the narrative that's being painted out there within everything. One, of course... to mention here is just Coinbase. Coinbase revenue falls 35% down to $ 1. 2 billion.

1:56 But this ended three consecutive quarters of losses. And that's a problem, I think, going forward for Coinbase because still a lot of their profits come from crypto trading for obvious reason. And the key here is that we are now entering a state in which this may become a very challenged market. And there's still some issues facing other major industries, but Coinbase is taking another step into it.

2:22 Their executives now are planning a potential sale, potential sale of up to 13.6 million coin shares. That's worth $ 2. 2 billion. So that's a problem right there. I think the market is going to start to punish these companies. If you look at Google, this, of course, has continued to fall now down to 277 trading after slightly up yesterday. And when you look at Intel, That's them literally teleporting down to $ 64, up literally from $ 92 to $ 64. If you're an Intel holder, that was an absolute shock this morning if you were looking at that. Amazon not doing much better, even though they are starting to grab up some of that pullback. And that pulled back down to $ 229. And look at this in the local. I want to just

3:11 go from that local top, which was right around $ 287. This was back in August of this year. This is where we are right now. That's down 20 percent. So these are the kind of numbers that I think are going to continue to face not only the market, but all of this is coming at the wrong time, especially with what's going on with Binance. Now, I want to go to a clip real quick because this gets into can the stock market take much more? Take a look.

3:40 And that is, as you say, it's cracking in the short term. I want to emphasize this is a very short term view. On top of that, we've got oil prices right at the highest. The two biggest dynamics out there are negative at the moment. And then you throw in the fact that it's month end. So it's after a really tough month for hedge funds and for traders.

3:57 So mark to market, people don't have the balance sheet to fight this. And you've got midterms risk next week. I just don't see how any major player can buy the dip today enthusiastically. And I think it's going to be a pretty horrible Friday, I have to say.

4:10 How much worse could the tech move be?

4:12 I think it could get really bad if it happens now because technically we've just had terrible earnings from some of the biggest companies in the world. And then we've already had the reset in yield. So we'll probably get a yield reset higher. It could be very bad, very short term.

4:27 All right. So very bad, very short term. I think that's the question is, is how long would this potentially happen? And we have seen recoveries. Listen, we've seen dips in 2025 right after the election. We've saw it in the COVID era. There's been eras where we've seen 20 to 30 percent pullbacks from these highs. And it's very possible we could be in that stage again. Moving on to what happened on the Binance hack. This is a world record hack coming in from North Korea. Hackers sold over $ 6 billion in cryptocurrency on Thursday, shattering the record. And of course, this is being reported by not just crypto media, guys.

5:04 This is being reported by mainstream media. And I want you to think about that. This is getting the exposure that we've been not wanting for crypto. And it's going now directly at crypto. And it's coming in from the mainstream. When you look at that, Binance is hacked four times bigger than anyone before, just to show you that chart.

5:26 The last one that was even close was Bybit at 1.46 billion. Prior to that, it was the Ronin hack, the Polygon hack, BNB. So all the way going back to half a billion with Mt. Gox and the impact it had. So could this be another one of those Mt. Goxes that we're facing in the industry? And I think the challenge is, is that now, back then, it was just crypto OGs.

5:51 It was just crypto narratives and from the crypto community. That has all changed now. Take a look at this clip. says it has suffered a major security breach. This is breaking news.

6:04 The estimated impact could top $ 6 billion, potentially making it the biggest crypto heist ever.

6:10 Really the largest theft of anything in human history. We at TRM are attributing North Korea with high confidence. That is relatively breaking news, I believe. And we have very strong off-chain intelligence, real-world intelligence that ties North Korea to this hack.

6:27 If a bigger player like Binance cannot prevent a breach, why should anyone trust a smaller exchange? It begs the question whether our money is safe.

6:41 So, so the.

6:44 I said this this morning, it makes the traditional banking sector kind of look like the adults in the room.

6:47 Right.

6:48 Right.

6:48 I don't remember a $ 6. 3 billion hack of a bank happening. Right.

6:55 All right, so you can kind of see. I mean, the point is that this is mainstream media piling on. However, what I will call to effect is the layer in which this could start happening. And if you look at the bank hack timeline, August there were eight hacks, September four hacks, October there's been 13 hacks, 10 in Asia that have been going along. These, of course, have been a bit smaller, yes, and quite a bit smaller. But I think this is just a matter of time before these hackers and these kinds of methodologies start to understand how to go into the system. This is the thing that is concerning me the most. All right, so let me go to this list because this is just the hack escalation in general. So this is looking at everything,

7:41 including banks, companies, governments, etc. And now you're going from $ 136 million in August, $ 766 million, that's almost 4x, and then $ 6.

7:47 3 million.

7:52 Right there, here we are in the end of October. But you can kind of see, I mean, we've seen all sorts of data centers that are being hacked. And then, of course, right there, the big Binance hack that occurred. So the point I'm getting at is there is going to be a worldwide hit on major financial markets. And I think this is just the first indicator. So do not feel that this is over by any means. And I'm not spreading fear. The idea is just reality. We're seeing this happen in front of us real time. Binance, of course, the hacker drained $ 6. 3 billion in total. First $ 300 million on XRP. And then $ 6 billion across 141 transfers on nine chains. So when you look at the line list here of the $ 5. 6 billion that was also

8:43 included in this, you had Bitcoin, ETH, TRON. XAUT, Tether, Circle, RLUSD, all of these were being hit in pretty short fashion. And of course, the big question is, is how do they respond? And here's what Chainalysis said. And I thought this was a bit more alarming to me, is he says it's seeing laundering patterns that it's never seen before.

9:06 So this is essentially, you know, this is being obviously aided by AI. And this could play into something bigger that I'll get to here in a second. But further into this, it points to a programmatic process, automation built to bury the trail. Now, granted, I've talked about this before, is there's going to be white hat agents and black hat agents in AI. And I think we are now dealing with those kinds of battles that are going to be going on, much like it was in cybercrime and with cyberattacks, as you're dealing with engineers who are fighting other engineers. This is going to be AI fighting other AI in the near future. That's just a picture of the dynamics around the transfers that were taking place across

9:51 this hack. And this is the point they were getting at. They haven't seen patterns like this before, so it has advanced up dramatically. in terms of the amount of moves this currency has been making. So it's now trying to get off chain. All right. So one good thing is that Richard Tang, the CEO, co-CEO of Binance said, bottom line, your money is safe. Everybody is pretty much on board with this. How they structure the rebuild of this is going to be something to watch closely because it could be very creative. Another thing right here, you had Jeremy Allaire.

10:26 This is what surprised me because this has been something that has been kind of a stance of circle where they have not frozen funds without, you know, pretty extensive, you know, reach in by law facilities. So this, of course, changed both Tether froze funds. USD1 freezing funds, and of course, USDC also freezing funds. Jack McDonald coming in from Ripple saying we're actively freezing affected funds. Just to kind of hit on this, and I guess that's right, because you've got North Korea. I guess this could be adding to their strategic reserve because of this hack. And we know that it's a different hacker group than the Lazarus group.

11:09 which changes things up, meaning there's more vectors coming at the industries. And I think you'll see this even in the Western banking systems overall. This is a problem. Elon tweeted about this. Probably not good timing right there. Every day is zero day. CZ fired back on this. And you can kind of see the statement here. Elon, I have a lot of respect. Bad time to troll. Please stop.

11:32 And then big statement right there. Are SpaceX shares now worth a billion? We might need some of that.

11:40 Ouch.

11:41 That could hurt things quickly on SpaceX. And Elon didn't say much after that. You also had Mike Belshi coming in on this. And I thought this was an interesting statement here, telling all crypto developers and engineers to get off of LinkedIn. That's how they're finding you, which creates you as a target. And if LinkedIn is one of the ways that this, because most of the time these systems are open to a VPN approach from almost any country in the world, that's a problem, I think, that could be presenting itself as more public profiles out there for a lot of these people, which is why you don't know, in many cases, who the engineers are for a lot of the government institution groups, in some cases,

12:25 financial institutions. So think about that, guys. Eric Balshunas comes in, says, hey, we've got ETFs. You get much lower trading fees and it's added adult production. But at the same time, ETFs were not necessarily performing. Also bleeding out as well right there with all ETFs. Bitcoin slightly down. ETH coming off heavy.

12:50 Solana coming off heavy. And XRP adding too. So point being, lots of ETFs on the move right now. Other things that are moving right here, of course, is Uniswap. Uniswap was also sold. And it was interesting because after it was sold, you would think there have been move on the market. But at the same time, we had Uniswap rebound back into 695 trading now. So wild things, man.

13:19 All right.

13:19 So when you look at how this could be done, this is an example. Bloom Drainer stole nearly a million laundering at like an eight figure haul. Primarily, though, this was looking at a lot of slot of change. You can see the address is 1300 addresses used there, mainly because it's the AI chain. It's the agent chain. And that could be something that will play into this later.

13:40 Because when you look at Anthropic and where it's going, remember that there's going to be a model that is going to be revealed around this hack. So we're going to figure out how this occurred. the models that were used. And once that's done, I'm not saying that it is anthropic, but if you're utilizing the best tools, you're probably using anthropic right now for things of this nature. Now, there are other great tools out there, but not for hacking, for building. But I think this could present the more pressure that I just mentioned on anthropic, especially at timing, that's not good for them going public. Thinking about what's going to happen after the midterms, Because this is going to get pretty dicey. Now you've got to deal with

14:26 situations where Elon is in the crosshairs if the Democrats take the House and the Senate. Take a look at this clip.

14:34 You know, he's created all these things that didn't, despite what people say, depend just on government subsidies. If there's a sweep of the Democrats, which is what he said in his tweet last night, and in two years, a Democratic president, you know, it's certainly not going to be great for his ability to work with the U.S.

14:55 Government.

14:56 But that's not something that I think motivates him. I don't think he makes a calculus. I think he's just deeply driven by some of.

15:08 His political fields.

15:09 You're kind of soft pedaling this. They're talking about going after.

15:13 Companies, people, employees. I mean, even media types, I imagine.

15:18 But they're looking at anyone that had anything to do with Trump that wasn't part of the resistance.

15:24 They're going to investigate.

15:25 That could be bad. All right. So do you guys believe that? Do you think that if there was a sweep, there would be a full on attack on everybody that was aligned with Trump? Because this could get into Trump crypto entities. This could get into companies that supported Trump during the crypto analysis of what we were trying to do on Genius Act and also on the Clarity Act.

15:53 This could get into the situations around Elon and all of his companies. along with all those funding elements. So I don't know, this is going to get nasty, I think, over the next couple of years. All right, so let me go back to the situation with what happened with Binance, because this is now starting to seep in other areas.

16:09 And now it's, is your crypto safe anywhere? Is the question centralized exchanges? Is it safe on hardware wallets? Trezor, of course, gets hit. They're already saying, hey, you need to move your funds now to a newly created wallet and a seed phrase as soon as possible. due to what's happening with crypto billets. So let's take a look at just what else is being affected, because I think this post right here was good, because it was in reference to Reddit's earnings. But what they said was the reality that AI is fundamentally changing everything away of how you and I access the internet. That in itself, I think, is going to change everything. It's why we're seeing the downward trend of Alphabet. AI is also destroying the business model,

16:54 And it's happening at an accelerated pace. This is another thing that I've talked about a lot is that the businesses themselves are being completely revamped during this time. I've talked to executive after executive that are saying this very thing is this is all changing how they're even operating. And then the internet has entered a new era. And when you look at tokenization, this was a scoop by Eleanor and a good one. She's talking about that there have been reps going out and actually creating warnings to these issuers that were listed on exchange against having their shares tokenized. One point, too, that I think Eleanor was kind of leaning into is that the analysis here, and it's likely that these calls are going to get out

17:39 leaked at some point, but the analysis is that your stocks aren't safe on these narratives. And I think that's the point. we're getting at is now you've got a lot more pressure on these companies, which may be, most of these guys are not necessarily aware of how this works. So I think it's all new tech to them. So they're kind of following the lead by what we're seeing here.

18:01 And it seems to be working because you have GM who is going to switch to NASDAQ from the NYSE on November 17th. So here mid month, you'll see that we can see more companies following in line with this. CNN reported this, though, and that is that we are continuing to see deadlock right here in the Israeli elections.

18:24 And neither of the two main blocks, and this is out there, you can kind of see Netanyahu and the opposition bloc, all starting to come into this. But the prime minister now still struggling to get the win over there, which could put more pressure on not only how things are going in the Middle East, but even here in the U.S., how military is going to be addressed, how most of the political agenda is going to be addressed post-midterm.

18:49 So this plays into a much bigger narrative going into the future.

18:54 U.S.

18:55 Military is preparing options for Trump when he says anything's possible with Iran. So this is more fuel to the uncertainty fire. Let's go on to something else, and that is global dock workers, because this is now happening at 113 ports across five continents. There's 22 countries involved in this. But the point is, is that it's affecting energy and energy is now starting to escalate beyond a new point that we are a little concerned around. Around 104 is where we are right now. And if you look at this chart, this comes off. Let me kind of go over here from the high. This now looks like it could be breaking out. Just be aware, guys, this if this starts to break out. Further than where we are right now, trading at 104. If we get up to

19:43 that 115 line, that is the no-fly zone for major disruption in the United States. States. And probably, remember, it's not necessarily availability, it's the price, because this is a market issue, because the global stage is setting the market price. It's not that the U.S. doesn't have access to it, it's the global price of oil, because some of these other countries do not have access. So That creates a whole new economic challenge that puts more pressure on D.C.

20:14 than what we've been dealing with even up to now. So things are getting heated. So I want to go to a clip real quick, and this gets into why oil is doing so well. Take a look.

20:25 Exxon and Chevron are both in the green pre-market after beating profit expectations.

20:29 Conflicts in the Middle East and Russia are driving refining profits to a record high.

20:33 Kind of the flip side of tech.

20:34 Some big numbers, but they came in even bigger than what we were expecting. I mean, overall earnings of $ 56 billion across the oil majors, which is the third highest on record. And this is all, of course, showing up at the price of the pump all across the country. So... Additionally, this is probably not what President Donald Trump and the Republican Party want to hear as they head into the midterm elections next week.

20:59 So when you look at polymarket right here, this is in reference to who wins the Senate. The problem is I think the expectations now are quite a bit higher than what I would put out there. I think this is much closer than this 73 percent, 28 that is being poised right now. This could be setting the market up for some disappointments. So pay attention, listen, it's around the corner, October 4th, or excuse me, November 4th. We'll find out really quickly. I wanna go to the last clip here, and this is in reference to how data centers are being teed up after midterms. Take a look.

21:37 Recent polling finding that 50% of voters oppose the build-outs within three miles of their homes.

21:44 It has become a flashpoint in some of the most competitive races, like the open US Senate seat. in Texas, as Texas became the number one state for data center growth and construction, surpassing Virginia. Lisa, we should say at this point, the expectation in Washington is that nothing's going to get past this session, which means that it is being teed up for the new lawmakers to look at it when they get sworn in with the new Congress.

22:09 All right, so a lot of points around that. I still fall on the data centers potentially could be positive for these communities. And I think AI... And in general, the compute power of a country is going to depend so much on its ability to trade globally, be able to maybe even wage defense, and even to the point of innovation. And that's the area that I think I'm really concerned with with the U.S. because we're no longer on a level playing field with the rest, or we are now on a level playing field with the rest of the world. We're no longer leading it. And these are going to be important areas. going forward, whether you like AI or not, it's not going away. And the key is, is who is going to figure out how

22:57 to fix it? I think our engineers and hopefully the United States can be able to lead that. But listen, guys, things are getting very, very nasty out there. We'll continue to cover this and a lot more. If you like this video, hit like and subscribe, drop a comment down below, and also join our free private member group. The link is in the description.