The fallout from the Binance security incident is spreading beyond the exchange itself. India’s largest crypto exchange, CoinDCX, has temporarily placed its futures market in reduce-only mode after the incident disrupted a key global liquidity provider, CoinDesk reports.
CoinDCX (Credits: CoinDesk)
CoinDCX Futures Curbed After Binance Incident
CoinDCX announced on X that its futures market is now in reduce-only mode, citing “recent developments impacting a global liquidity provider.” The exchange did not name the provider publicly, but a CoinDCX spokesperson told CoinDesk it was Binance, from which CoinDCX aggregates a significant share of its futures liquidity.
Under the restriction, traders cannot open new positions or increase the size of existing long or short bets. They can still add or reduce margin on existing positions, and open orders continue to execute. CoinDCX said the restriction is temporary but has not given a timeline for returning to normal trading. Deposits, withdrawals and customer funds are unaffected, the exchange said.
The $6.3 Billion Binance Hack
Binance, the world’s largest crypto exchange, reported a major security incident on October 29–30, with an estimated impact of about $6.3 billion in crypto assets. Early findings pointed to a compromised DevOps engineer’s laptop that enabled unauthorized withdrawal transactions; Binance said there was no evidence of private-key leaks.
Binance temporarily paused withdrawals across multiple networks, while centralized issuers froze more than $2.6 billion in assets linked to the incident, including over $1.567 billion in USDT and $800 million in USDC. CoinDCX’s move shows how deeply interconnected crypto liquidity has become — an incident at one giant venue now ripples across regional exchanges within hours.
Also Read: $6.3 Billion Binance Hack Sends Bitcoin to Six-Week Low, Standard Chartered Sees More Pain Ahead | Binance Hack Fallout: Institutional Crypto Investors Rush to Pull Funds From Exchanges
Source: CoinDesk — read the full story there.
