Binance sets aside $6.34 billion after hack, and more

The following article is adapted from The Block's newsletter, The Daily, which comes out on weekday afternoons.

Happy Friday! Bitcoin has fallen below $77,000, while BNB is also down amid the Binance hack.

In today's newsletter, Binance says it has $6.34 billion ready to cover hack losses, Trezor reports a suspected hardware implant in a Safe 5 wallet sold by CryptoBilis, Strategy's preferred-stock changes could pave the way for more bitcoin purchases, and more.

Meanwhile, two Texas brothers have been sentenced to 15 years over an $8 million crypto heist.

P.S. Don't forget to check out The Latent, our sister website covering AI. Get The Latent Daily here and all other The Block newsletters here. Also, follow The Block and The Latent on X for more updates.

Binance says it has $6.34 billion ready to cover hack losses

Binance said it has allocated $6.34 billion in company funds and reserves to cover losses from Thursday's hack, which the exchange estimates at $6.3 billion.

• Binance already holds about $5 billion in the affected digital assets and is buying the remaining $1.3 billion through market and over-the-counter transactions.
• The funds are separate from around $3 billion in assets frozen by industry partners, including Tether, Circle, Ripple and World Liberty Financial.
• Co-CEO Richard Teng said an attacker compromised a DevOps engineer's laptop to gain access to a service container and submit unauthorized withdrawals. Binance found no evidence of a wallet private key leak.
• Binance has suspended withdrawals but continues to allow deposits. Teng said the exchange would cover all losses.
• TRM Labs said the attack shared similarities with previous hacks linked to North Korea, including the $1.5 billion Bybit breach. Binance has not attributed the incident to any group.

Trezor reports suspected hardware implant in Safe 5 sold by CryptoBilis

Trezor has warned customers who bought hardware wallets from reseller CryptoBilis since March to move their funds after receiving a report of a suspected hardware implant in a Safe 5 device.

• The reported implant includes a cellular module that could capture information displayed on the screen, including recovery phrases, and transmit it over a mobile network.
• Trezor has not examined the affected device but considers the report credible. Four other devices inspected showed no signs of tampering, and no user losses have been reported.
• Trezor removed CryptoBilis from its reseller network earlier this month after similar tampering incidents involving Ledger devices.

Texas brothers sentenced to 15 years for $8 million crypto heist

Two Texas brothers who held a Minnesota family at gunpoint for nine hours in a September 2025 cryptocurrency robbery were sentenced to about 15 years in prison each on Friday.

• Raymond Christian Garcia received 15 years, while Isiah Angelo Garcia was sentenced to 15.5 years. Both pleaded guilty to robbery charges in June.
• The brothers forced the father to transfer cryptocurrency and later discovered he had more funds stored in a hardware wallet at a cabin three hours away.
• The brothers fled after the victim's son called 911. Investigators tracked them down using a Wendy's receipt, surveillance footage, and rental car records.

Strategy's preferred-stock fix sets up renewed bitcoin buying, analysts say

Strategy's shares fell nearly 10% following its third-quarter earnings, but StoneX and TD Cowen remain bullish, saying the company's stronger cash position and more stable preferred-stock structure could support renewed bitcoin purchases.

• Strategy ended the quarter with $5.07 billion in dollar assets, including a $4.83 billion cash reserve covering more than three years of preferred dividends and debt interest.
• The company spent roughly $2 billion repurchasing STRC preferred shares, while shareholders approved daily dividend accruals for four preferred securities. Bitcoin per share has fallen 3.7% this year.
• StoneX maintained its buy rating and $435 price target, while TD Cowen kept its buy rating and $260 target.

Coinbase Q3 net income jumps 66% as prediction markets gain traction

Coinbase reported a 66% year-over-year increase in third-quarter net income to $719 million, although total revenue fell 35% to $1.22 billion.

• Prediction markets surpassed $200 million in annualized revenue, doubling from the previous quarter. Bernstein analysts said prediction markets and derivatives helped offset weaker spot trading activity.
• Spot trading volume fell 8% quarter over quarter to $135 billion, while stablecoin revenue rose 3% to $328 million. Bernstein and William Blair maintained their Outperform ratings on Coinbase.

In the next week

• The U.S. will release October manufacturing PMI on Monday, September job openings data on Tuesday, and ADP employment and services PMI figures on Wednesday. Weekly jobless claims are due Thursday, followed by the October jobs report, unemployment rate, and preliminary November consumer sentiment on Friday.
• The Eurozone will release its final October manufacturing PMI on Monday, followed by services and composite PMIs and flash inflation figures on Wednesday. September producer prices are due Thursday, followed by retail sales on Friday.
• Major token unlocks next week include Hyperliquid (HYPE), Bitway (BTW), Kite (KITE), Momentum (MMT), Sui (SUI), Ethena (ENA), and EigenCloud (EIGEN).

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