Pinned post
Replying to @BitMNR
2/
"Late last week, Binance was hacked and $6.3 billion of customers' funds was stolen. According to reports by Binance and other media sources, the exploit stems from an infiltration of a contractor into Binance's corporate infrastructure. The FBI has named North Korea (DPRK) as the perpetrator. While this is a terrible development, in my view, the relatively muted crypto market reaction is very constructive, particularly compared to the market's response to prior sizable crypto thefts," stated Thomas "Tom" Lee, Chairman of Bitmine.
"In February 2025, ByBit was also hacked by DPRK (with a very different methodology) and $1.5 billion of customer crypto was stolen. The day the ByBit theft was announced, ETH fell 8% and was down 20% within a week. By contrast, since the Binance theft was disclosed, ETH went down 4%. We believe this is a far more muted market reaction despite the size of the theft being approximately quadruple the size," continued Lee.
"We believe there are 6 reasons that explain why the Binance theft has a muted market reaction. These are:
➡️Binance has the financial capabilities to cover all customer losses.
➡️There was not a 'cascade' of Defi protocol failures, as was seen post-ByBit theft.
➡️Swift industry action cut potential loss by 50%.
➡️FBI named North Korea (DPRK) as the responsible party within 2 days of the theft. Historically, authorities have taken as long as 180 days to name DPRK in prior heists.
➡️Exploit was a "corporate infiltration" of Binance infrastructure and not a blockchain exploit.
➡️Limited price downside is a sign that a crypto "bull market" is underway, notwithstanding recent price declines.
And taken altogether, we believe this is a sign that the crypto industry is increasingly resilient and more capable of absorbing these nation-state assaults on financial infrastructure,"
stated Lee.
"Late last week, Binance was hacked and $6.3 billion of customers' funds was stolen. According to reports by Binance and other media sources, the exploit stems from an infiltration of a contractor into Binance's corporate infrastructure. The FBI has named North Korea (DPRK) as the perpetrator. While this is a terrible development, in my view, the relatively muted crypto market reaction is very constructive, particularly compared to the market's response to prior sizable crypto thefts," stated Thomas "Tom" Lee, Chairman of Bitmine.
"In February 2025, ByBit was also hacked by DPRK (with a very different methodology) and $1.5 billion of customer crypto was stolen. The day the ByBit theft was announced, ETH fell 8% and was down 20% within a week. By contrast, since the Binance theft was disclosed, ETH went down 4%. We believe this is a far more muted market reaction despite the size of the theft being approximately quadruple the size," continued Lee.
"We believe there are 6 reasons that explain why the Binance theft has a muted market reaction. These are:
➡️Binance has the financial capabilities to cover all customer losses.
➡️There was not a 'cascade' of Defi protocol failures, as was seen post-ByBit theft.
➡️Swift industry action cut potential loss by 50%.
➡️FBI named North Korea (DPRK) as the responsible party within 2 days of the theft. Historically, authorities have taken as long as 180 days to name DPRK in prior heists.
➡️Exploit was a "corporate infiltration" of Binance infrastructure and not a blockchain exploit.
➡️Limited price downside is a sign that a crypto "bull market" is underway, notwithstanding recent price declines.
And taken altogether, we believe this is a sign that the crypto industry is increasingly resilient and more capable of absorbing these nation-state assaults on financial infrastructure,"
stated Lee.
