Crypto News: A $6.3 billion crypto heist

Good morning. Binance gets hit in crypto’s biggest hack attack. Looking past the midterms, the greenback is back. And Jack Dorsey wants to be your all-round banker. Listen to the day’s top stories.

— Angela Cullen

Market Snapshot
S&P 500 Futures	7,674.50	-1.0%
Nasdaq 100 Futures	28,838.25	-2.4%
Bloomberg Dollar Spot Index	1,220.85	-0.3%
Market data as of 07:12 AM ET. Data is subject to provider delays.	Your watchlist

Hackers stole $6.3 billion from Binance in the biggest crypto theft to date, marking a fresh blow to efforts to push digital assets into the mainstream. The crypto exchange froze $3 billion and suspended all withdrawals as it worked feverishly on a security revamp. Binance said it will make good on all the losses. Blockchain intelligence firm TRM Labs said North Korea’s elite hacking unit was behind the heist. The stolen tokens will probably be impossible to recover, said Ballet, the digital-asset hardware wallet firm. Bitcoin was remarkably sanguine, paring losses to less than 2%.

The tech selloff deepened as more disappointing earnings accelerated a rotation out of the sector. Intel shares plummeted after its revenue forecast missed. With the US midterm elections days away, Wall Street expects Democrats to win control of at least one house of Congress, setting the stage for a potentially volatile ride in stock and bond markets.

Donald Trump canceled appearances in Republican-friendly Kansas and Iowa, and will hold tele-rallies instead. His party faces robust challenges from Democrats seizing upon voter discontent about rising costs as well as the war in Iran. Democrats — and some Republicans — are using the midterms as a chance to test out potential presidential campaign messaging and strategy. Speculation is swirling around Jon Ossoff’s White House ambitions, but he has unfinished business to tend to in Georgia first. Here’s a who’s who to help you keep track. Nobel economics laureate Daron Acemoglu has a warning for progressives all the same: They have good ideas, but they’re too divisive.

Javier Milei’s free-market model is creating new winners and losers across Argentina. Wall Street is already worrying the results could jeopardize his re-election bid next year. Thousands who relocated to the dusty windswept plains of Patagonia on the promise of a shale bonanza are among those who hold a key to the Argentine president’s future in a country infamous for its pendulum-swing politics. The US also has a stake in his success after extending a $20 billion lifeline last year. Milei’s policies show two Argentinas emerging.

Mark Carney Wanted a New Alliance. Europe Is Taking Him Seriously

The Midterm Races Wall Street Can’t Ignore Photographer: Angela Weiss / AFP via Getty

Join the conversation: The US midterms could reshape the balance of power in Washington, with big implications for markets and economic policy. Which races should investors be watching, and what could the results mean for your portfolio? Join Bloomberg journalists for an interactive Live Q&A. Send in your questions in advance to: liveqa@bloomberg.net

Deep Dive: Dollar’s Room to Run

The dollar’s rally to a 17-month high may carry enough momentum to shrug off the midterm results, with high interest rates and a surge in AI-related spending drawing capital even if the vote delivers political gridlock, strategists and investors say.

It’s a departure from the narrative that’s prevailed over the past two years, as global tariffs spurred calls for de-dollarization while surging US public debt gave rise to the so-called debasement trade.
The biggest boost may come from the Federal Reserve, which is expected to resume hiking rates once the midterms are over. The central bank stood pat this week, with Chairman Kevin Warsh signaling officials’ “readiness to act.”
September’s rate hike propelled the greenback to its best month since March, and asset managers and non-commercial players have maintained their bullish stance, holding just under $40 billion in wagers tied to the currency strengthening, data show.
But some headwinds are gathering, including a shifting geopolitical backdrop. How Trump acts on Iran after the vote will be crucial, according to CIBC Capital Markets strategist Noah Buffam.

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Before You Go

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Jack Dorsey’s Cash App is wooing skeptics with ETF trading, Bitcoin and sparkly debit cards. It wants to be everyone’s bank, one “modern earner” at a time.

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