Binance Hack Losses Reach $6.34 Billion as CFTC Chair Backs Blockchain Tracing

Binance, the world's largest crypto exchange, was hacked on Thursday night, with losses amounting to around $6.34 billion. Commodity Futures Trading Commission Chairman Michael Selig said on Friday that the public record of blockchain transactions gives investigators a strong chance of tracing the stolen funds, TradingView reported. Binance is a private crypto exchange founded in 2017 and headquartered in George Town, Cayman Islands, according to akta.pro company records.

Selig's Tracing Case After the Binance Breach

Selig, speaking in an interview on CNBC, said the blockchain's transaction history could help investigators follow the stolen funds even if attackers moved them through services designed to obscure their origins. "I do believe that the blockchain gives us a very good shot," Selig said. He said the blockchain gives investigators more ability to track this sort of activity than they would have in a conventional bank robbery.

Selig acknowledged that hackers could use mixing services such as Tornado Cash to make funds harder to trace, but said blockchain records can still help investigators follow the money. He said the attack targeted systems surrounding the blockchain rather than the blockchain itself, and that the CFTC would work with law enforcement to assist with the investigation. "I've heard some allegations and rumors as to where it could have gone," Selig said. "So we're of course going to work with law enforcement to assist however we can."

Selig said the breach reinforced the CFTC's case for bringing crypto trading venues under federal oversight, particularly offshore exchanges that operate without the safeguards required in U.S. financial markets. "Well, this proves our exact point in proposing regulations for crypto markets earlier this month," he said. Selig said the agency wants to offer exchanges a path to register with the CFTC, which would subject them to cybersecurity requirements similar to those in U.S. financial markets.

Binance's Scale in Company Records

Binance holds approximately $155.64 billion in tracked Proof-of-Reserves as of April, representing 68.05% of total tracked reserves among major exchanges, according to akta.pro company records. Alternative data shows $130.1 billion as of July 6, 2026. The same records show Binance handles approximately 60% of centralized virtual currency spot trading globally, while some sources cite 39% of global spot trading volume. Binance captured 34.9% of tracked monthly trading volume in May across both spot and derivatives markets.

Earlier Binance Security and Market Events

A $6.3 billion crypto heist unfolded on Thursday evening, prompting a Kyiv-based employee at Crystal Intelligence to trace the stolen funds while sheltering from a Russian air raid, Bloomberg reported. Trust Wallet announced new security procedures and code-hardening plans after AI-driven attacks on Polymarket and Binance, with CEO Felix Fan saying the wallet will keep specifics private but may release reports and collaborate with security firms, Crypto Briefing reported. Solmate Infrastructure confirmed it has no Binance accounts or exposure following a reported security incident, and its validator infrastructure continues operating normally, Stock Titan reported.

What Comes Next for the Binance Investigation

Selig said the CFTC would work with law enforcement to assist with the investigation into where the stolen funds went. The agency's proposal to offer exchanges a federal registration option with cybersecurity safeguards followed its regulations for crypto markets proposed earlier this month.