Robinhood Markets Inc. (NASDAQ:HOOD) shares are trading lower Friday amid a fall in cryptocurrencies after Binance disclosed the largest crypto hack on record. Crypto is a meaningful part of Robinhood’s revenue.
Binance Discloses Record $6.3 Billion Hack, Crypto Prices Fall
Binance said about $6.3 billion in funds were stolen in a security breach, surpassing the previous record of $1.5 billion taken from Bybit in February 2025. The exchange suspended deposits and withdrawals and said it would cover all losses. About $3 billion has been frozen on-chain, including more than $1.5 billion in USDT frozen by Tether and over $800 million in USDC frozen by Circle.
Binance said an initial investigation points to a compromised engineer’s laptop, while blockchain analysis firms TRM Labs and Chainalysis attributed the attack to North Korean hackers. Crypto prices fell on the news, with ether down 5.7%, BNB down 8.2%, XRP down 7.4% and Solana down 7% in early trading, according to CoinDesk, which also reported $1.57 billion in liquidations.
Why a Crypto Selloff Matters for Robinhood
Robinhood lets customers buy and sell crypto, and it earns transaction revenue each time they do. Crypto brought in $120 million in the third quarter, about 8% of Robinhood’s record $1.424 billion in total revenue, though it was down 55% from a year earlier. Transaction-based revenue rose 19% to $867 million, with crypto’s decline offsetting gains in event contracts, options and equities. A sustained drop in crypto prices, or a weakened confidence in exchanges following the hack, could reduce trading volumes and related revenue.
Robinhood is less dependent on crypto trading than in prior years. Options brought in $399 million in the quarter, event contracts contributed $173 million and equities added $121 million. CFO Shiv Verma told CNBC that event contracts tied to crypto price moves performed well in the quarter, giving customers another way to express a view on crypto, so swings in prices don’t necessarily hurt all of Robinhood’s crypto-related activity. Robinhood has not been implicated in reports surrounding the Binance hack.
Robinhood Shares Drop
HOOD Price Action: At the time of publication, Robinhood shares are trading 6.66% lower at $85.49, according to data from Benzinga Pro.
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