Analysis: After the Binance hack, Bitcoin fell only about 2%, far below the 26% drop after the FTX incident

Odaily News: 21Shares published an analysis report on the Binance hack, stating that on October 29, Binance suffered an attack of approximately $6.3 billion, and about $3 billion of the stolen assets have now been frozen. Binance has promised to bear all losses. Within 24 hours after the incident, Bitcoin fell slightly more than 2%, significantly lower than the approximately 26% drop in Bitcoin after the FTX incident in November 2022.2

21Shares emphasized that this incident was a security breach involving Binance alone, and the Bitcoin network itself was not attacked. Binance said it will cover all losses through the SAFU fund and corporate funds. Based on a Bitcoin price of approximately $78,509, the 15,000 BTC held by the SAFU fund is worth about $1.18 billion, which can cover about 36% of the losses on unfrozen assets, with the remaining portion to be borne by corporate funds. The report also mentioned that Chainalysis has high confidence that the attack is related to North Korea, but Binance and government agencies have not yet officially confirmed the attribution.

In addition, 21Shares stated that the assets of its physically backed ETPs and ETFs are held in cold storage by third-party custodians such as BitGo, Coinbase Custody, Anchorage Digital, and Zodia Custody, and are not stored in exchange accounts, so they were not affected by this incident, and all of its products are trading normally.