If Binance got bankrupt who will be affected?

[Crypto Library]

I don't know if this board fits this, if not let just suggest where I should move this.
The first answer to the title is that I myself know that those who keep funds in the exchange will definitely be affected.

Anyway, lets get into the main point, Binance got hacked, and as from the CoinTelegraph, what I get in current time is it's approximately $5.7 billion dollar, this is the biggest hacking incident in the crypto space and exchange that I have ever seen.

Anyway, this is not my main point, my main point is BNB or Bep-20 network backed by Binance. Now my question is if Binance is  couldn't able to recover this hacked and this exchange goes bankrupt, then what will be the impact on the other coins on the bep-20 network? Like there are many people who hold USDT or USDC on bep-20 network just for low tx fee.. will they lose the funds they hold?

At the same time, I know that in 2025, Binance announced that Trust Wallet is no longer under their control, but even then, there are some relationships between them. Now my question is: is there any possibility that those who held funds in Trust Wallet will face any problems?

[TryNinja]

Isn't Trust Wallet a self-custody (non-custodial) wallet?

AFAIK, you create your own wallet, with your own seed, and hold your own coins on it. Binance has nothing to do with that just because they own the wallet.

[Crypto Library]

Isn't Trust Wallet a self-custody (non-custodial) wallet?

AFAIK, you create your own wallet, with your own seed, and hold your own coins on it. Binance has nothing to do with that just because they own the wallet.

Who knows? As we know, Trust Wallet is closed source, and since hacking is happening, anything can happen, so that I mentioned it in the topic.

Anyway, let's skip Trust Wallet, but what about the BEP-20 network? Won't those holding other tokens on this network be in danger if Binance goes bankrupt?

approximately 5.77billion gone VS  15,000 BTC($1billion) in SAFU

!!!

[TryNinja]

Anyway, let's skip Trust Wallet, but what about the BEP-20 network? Won't those holding other tokens on this network be in danger if Binance goes bankrupt?

BEP-20 tokens aren't all from Binance. They have some pegged coins like BTC-B, where they own 1 BTC for each 1 BTC-B, but what does this have to do with tokens created by third parties?

If you hold BTC-B, of course you're at risk since the company that holds the backing is getting hacked.

[BitMaxz]

It looks like an FUD because the source came from a different source. Binance released different news related to "Link to an alleged investment fraud"; the Chinese prosecutor is currently seeking to confiscate the 5.7B due to this fraud.


I don't know if your source is legit or not, but I see a similar amount with different news not related to the Binance hack. There are many news pop-ups; some of them are fake to get an advantage with the current price pump recently and then take the liquidity from $81k before it moves to its original destination.

[julerz12]

Anyway, this is not my main point, my main point is BNB or Bep-20 network backed by Binance. Now my question is if Binance is  couldn't able to recover this hacked and this exchange goes bankrupt, then what will be the impact on the other coins on the bep-20 network? Like there are many people who hold USDT or USDC on bep-20 network just for low tx fee.. will they lose the funds they hold?

Some tokens that live on that chain could be affected; BNB's price would surely plummet, and if that coin goes to zero, there's not much reason for validators to keep supporting the BSC network. Without the entire chain, dApps that rely on BSC would also cease to exist.
Most of the Binance-pegged tokens, like BUSD will be affected, too. With no official reserves backing these tokens means, it just becomes a worthless token.

At the same time, I know that in 2025, Binance announced that Trust Wallet is no longer under their control, but even then, there are some relationships between them. Now my question is: is there any possibility that those who held funds in Trust Wallet will face any problems?

Trust Wallet might survive it. AFAIK, they also support other chains/network on their app. But those Binance-pegged tokens held in this wallet or in any other wallet might become worthless.
It looks like Binance has frozen $2.54 billion now, and all deposits/withdrawals are temporarily suspended.
Sources: https://x.com/binance/status/2115947325617299903 | https://x.com/binance/status/2115960292115124558

[FinneysTrueVision]

Only their hot wallet was exploited. I would like to believe that Binance was at least smart enough to keep their stablecoin backing in cold storage. Most of Binance’s stolen stablecoins should be recoverable. Worst case scenario, if they didn’t have enough backing for those BNB Chain tokens, their price would depeg, but there would still be partial coverage and users wouldn’t lose everything.

For tokens that don’t have a freeze function, there is a risk that users might take a loss, but I think Binance will probably end up compensating any damages. This isn’t enough to bankrupt them. They can take some loans short term, use those funds to cover the loss, and repay with future revenue.

[albon]

Some tokens that live on that chain could be affected; BNB's price would surely plummet, and if that coin goes to zero, there's not much reason for validators to keep supporting the BSC network. Without the entire chain, dApps that rely on BSC would also cease to exist.
Most of the Binance-pegged tokens, like BUSD will be affected, too. With no official reserves backing these tokens means, it just becomes a worthless token.

I agree that a lot of tokens on this network could be affected mainly those linked to binance. BNB has already reacted negatively to this news and is down around 8% now. It could drop more if things get worse, like what happened a few years ago when the SEC fined Binance and what happened with CZ.

Also, Binance stopped using BUSD and replaced it with FDUSD which is now one of the stablecoins linked to its ecosystem, I think you meant FDUSD.

It looks like Binance has frozen $2.54 billion now, and all deposits/withdrawals are temporarily suspended.
Sources: https://x.com/binance/status/2115947325617299903 | https://x.com/binance/status/2115960292115124558

The $2.54 billion frozen by Tether and Circle is a good thing,, especially since the actual amount stolen has not been confirmed yet.

Arkham reported $5.78 billion and is the total value of the wallets they are tracking. but this doesn't mean that this amount was actually stolen.

So everyone should don't spread FUD before we know the full story. I hope this incident ends without more damage. . I believe Binance can handle this as they have already faced and overcome many challenges in the past.

[DanWalker]

On paper, all three have ties to Binance, but they are separate entities.
Trust wallet is noncustodial. So your asset sit on chain, not on exchange or in Binance hot wallets. BSC, meanwhile, is run by a network of validators, it does not depend entirely on Binance's servers.

If Binance goes under, funds in TW or USDT, USDC on Bsc wouldn't automatically disappear. That said, it would still have a huge impact, ecosystem could take a serious hit in terms of liquidity and activity.

[shinratensei_]

The USDT and USDC in BSC is owned by Circle and Tether. Binance have no business with the reserve, the exploit could affect it if the stablecoin were the bridged types, there's no indication of that so far. I think the most affected people are DEX liqudity provider, they could get impermanent lose and lending supplier who can ended up with unliquidable bad debt since hackers are borrowing against the hacked money which fortunately got blocked by AAVE, their swift action means a lot tbh. Finally there is other thing, the oracle. A lot of perp dex tracking binance oracle making market out of it, there is estimated half billions liquidation has been happening so far.

[joniboini]

Who knows? As we know, Trust Wallet is closed source, and since hacking is happening, anything can happen, so that I mentioned it in the topic.

The implication from this is that Trust Wallet somehow needs Binance to run properly, which for a self-custodial kinda don't make sense when the keys are controlled by the users. Unless they somehow program every communication to happen through Binance controlled servers so no new txs can be made. If that's the case tough users can import their keys to another wallet easily. Unless we assume something more nefarious like Trust Wallet having malicious code or something similar (which is a probability regardless of whether Binance is alive or not). CMIIW.

[KingsDen]

I know that this big hack will create a lot of FUD. The hack is big enough but not enough to bankrupt Binance. It will be a shame to the industry that Binance that bails out the hacked exchanges is being bankrupted.

About Trust wallet, there's no correlation, Trust wallet is not an exchange. With my seed phrase, I might decide to import it into another wallet. The industry is not that porous that Binance hack will take down Binance and also affect trust wallet.

I cannot say the fate of other tokens running on the BSC.

[Lida93]

Anyway, this is not my main point, my main point is BNB or Bep-20 network backed by Binance. Now my question is if Binance is  couldn't able to recover this hacked and this exchange goes bankrupt, then what will be the impact on the other coins on the bep-20 network? Like there are many people who hold USDT or USDC on bep-20 network just for low tx fee.. will they lose the funds they hold?

It's disturbing how how we have had multiples of cyber security breaches in not more than a week. A scenario that has never being heard of in  history.
We know Binance is a multi billion dollars exchange platform but this hack is too way big and could lead to something unprecedented about Binance and it's users funds. But then, here's what making me feel that users with coins on the bep-20 network may lose it from what other users on x are explaining.

the binance hacker just did something genius and it should scare you

tether froze $1.5 billion in stolen USDT. circle froze $800 million in USDC. everyone's celebrating like the problem is solved

meanwhile the hacker deposited the stolen USDT on aave, borrowed ETH against it, and walked away. because USDT can be frozen. ETH can't

he's never paying it back. he doesn't need to

tether and circle just proved they can freeze billions in seconds. and the hacker just proved that if you know how defi actually works, none of that matters

the freeze saved some of the money. but the smartest money was already gone before anyone pressed the button

At the same time, I know that in 2025, Binance announced that Trust Wallet is no longer under their control, but even then, there are some relationships between them. Now my question is: is there any possibility that those who held funds in Trust Wallet will face any problems?

I can't connect how that may affect Trust wallet owners funds regardless of any unclear relationship. Only what I expect now on is users getting FUD and transfering their funds to where they see secured for the main time.

If Binance couldn't protect their platform from getting comprised after having to be spending millions of dollars on improving  the security of their platform, then I wonder why a d what would still make people leave their coins in other centralized exchanges and be thinking it's safe there. Self custodial airgap wallets  happen to be safer at this moment.

[Zaguru12]

I know that this big hack will create a lot of FUD. The hack is big enough but enough to bankrupt Binance. It will be a shame to the industry that Binance that bails out the hacked exchanges is being bankrupted.

According to reports from the over $6B that was stolen, ~$3B is pretty well frozen in different chains with Tether and circle leading the chains so let’s assume the remaining ~$3B isn’t enough to get the exchange bankrupt because binance holds around $135B in publicly tracked binance wallets that means this attack affected 4.4% of total amount they hold. So from all indications no bankruptcy coming in

About Trust wallet, there's no correlation, Trust wallet is not an exchange. With my seed phrase, I might decide to import it into another wallet. The industry is not that porous that Binance hack will take down Binance and also affect trust wallet.

Yes should binance get bankrupt it has no business with the trustwallet even they own it because it’s a self custody wallet. But let’s look at it from this angle, trustwallet is closed source wallet, do you know what they do to your seed phrase or private key behind doors? What if they store them and hacker get access to it and decides to sweep it?

[julerz12]

also, Binance stopped using BUSD and replaced it with FDUSD which is now one of the stablecoins linked to its ecosystem, I think you meant FDUSD.

I had no idea they no longer support BUSD. Oh well, the fate of that new stablecoin still depends on whether Binance can get back up on its feet after today's events.
TBH, I doubt any of the recent incidents could make a dent in their operations. They've got enough funds to cover at least 33% of the stolen funds from the SAFU emergency funds (SAFU has about $1billion) - since the other $3billion is already frozen and assuming they only need to cover the $3 billion that's still floating around the hacker's wallet address.
I wonder if they could recover the other $3 billion worth of stablecoins that were frozen, though. That might prove to be the hardest part of this incident - recovering what's stolen.

So everyone should don't spread FUD before we know the full story. I hope this incident ends without more damage. I believe Binance can handle this as they have already faced and overcome many challenges in the past.

This isn't FUD; OP is just asking the what if question.  What's certain, though, is that someone on Binance is getting fired. 

[RGBTC]

Anyway, let's skip Trust Wallet, but what about the BEP-20 network? Won't those holding other tokens on this network be in danger if Binance goes bankrupt?

As long as even one validator is running, the network will continue to operate; assuming, for sure, that the validators on this list  https://bscscan.com/validators aren't actually under Binance’s control behind the scenes, as some memes have jokingly suggested. Binance cannot arbitrarily withdraw funds from users' non-custodial wallets; that is, after all, how such wallets are designed to work.

[batang_bitcoin]

But let’s look at it from this angle, trustwallet is closed source wallet, do you know what they do to your seed phrase or private key behind doors? What if they store them and hacker get access to it and decides to sweep it?

As a matter of fact, there was a backdoor in the past through their browser extension. And this is true that no one knows if the seed phrase they have generated through trust wallet is safe and sound because it's closed source. The impact of that attack was with 2500 wallets and then approx of $8.5M of stolen crypto assets. Whether Binance still has a share of ownership of trust wallet or they don't have any connection with it, don't trust closed source wallets.

[Darker45]

All of us will be affected. We've all seen how Bitcoin tanked from $81,000 all the way to $76,000 in just a matter of hours because of the news. Now that things have already settled down a bit, the market remains down, has yet to recover. Imagine if the hack were big enough to bankrupt Binance, the largest crypto exchange. We're probably still on our way to the bottom right now.

As to the rest of the wider Binance ecosystem, I'm sure they'll be seriously affected too. BNB, the coin, would nosedive, for sure. BNB, the chain, which is mainly dominated by Binance validators will be deserted as well. I'm sure even YZi Labs, used to be Binance Labs, its venture capital arm, would also suffer a lot. Pretty sure, it'll be another FTX scenario.

[MarryWithBTC]

All of us will be affected. We've all seen how Bitcoin tanked from $81,000 all the way to $76,000 in just a matter of hours because of the news. Now that things have already settled down a bit, the market remains down, has yet to recover. Imagine if the hack were big enough to bankrupt Binance, the largest crypto exchange. We're probably still on our way to the bottom right now.

To me, bitcoin dropping from 80k to 76k is not a great impact, infact, that is the type of movement that the market has been making with fundamentals.

Instead, I'll say that the market is much more matured, I learnt that in the past, only the news of binance hack without evidence would drag the market to -20%.

In the other way round, the bitcoin drop from 80k to 76k is a buy opportunity. So, not everyone is affected by binance hack.