Bitcoin Fell Just Over 2% After Binance Incident, Versus 26% After FTX

Bitcoin (BTC) declined just over 2% in the 24 hours following Binance’s Oct. 29 security incident, compared with an approximately 26% slide after the FTX collapse in November 2022.

The problem was confined to a vulnerability at Binance; the Bitcoin network itself was not compromised.

The incident involved about $6.3 billion, and roughly $3 billion in stolen assets had been frozen. Binance pledged to cover all losses through its Secure Asset Fund for Users (SAFU) and company funds.

SAFU’s 15,000 BTC could cover about 36% of losses still unfrozen. Binance will use company funds to cover the rest.

Cold storage at BitGo, Coinbase Custody, Anchorage Digital and Zodia Custody held the assets for 21Shares’ physically backed exchange-traded products and ETFs, outside exchange accounts. All 21Shares products continued trading normally.