Binance hack draws regulatory calls after CZ assesses billions in losses
Following a multibillion-dollar breach at Binance, CFTC Chair Michael Selig urged offshore exchanges to adopt U.S. oversight, while Binance founder Changpeng Zhao downplayed the market fallout compared to historical crypto collapses.
Binance founder Changpeng Zhao addressed a massive exploit at the cryptocurrency exchange, acknowledging the incident as a major disaster for both the industry and the platform. Despite characterizing the event as painful, Zhao asserted that the company would survive and noted that while the $6.3 billion loss ranks as the largest in U.S. dollar terms, it remains smaller in Bitcoin terms than previous crises.[2][3][5]
Zhao compared the incident to the Mt. Gox collapse, which involved 650,000 BTC and accounted for more than 5% of Bitcoin's total supply. He highlighted that while Mt. Gox and FTX impacted nearly 100% of their users and customer assets, Binance is covering the losses to shield its customers. According to Zhao, covering the shortfall limits market impact by ensuring there is effectively only one victim.[1][5]
The breach quickly prompted scrutiny from regulators. Commodity Futures Trading Commission Chair Michael Selig described the incident as a record $6.4 billion theft, arguing that it demonstrates why offshore trading platforms must come under U.S. oversight. Selig stated that offshore exchanges should register with the CFTC and implement U.S.-grade cybersecurity standards.[4][6]
Key facts
- Binance founder Changpeng Zhao said the $6.3 billion hack is the largest crypto theft in USD terms, though smaller than Mt. Gox in Bitcoin terms.
- Zhao noted that Mt. Gox lost 650,000 BTC, exceeding 5% of Bitcoin's total supply, while Mt. Gox and FTX each affected nearly 100% of user assets.
- Zhao called the incident a major disaster for the industry and Binance, adding, 'It hurts, but we survive.'
- Zhao stated that Binance is covering user losses, which leaves effectively only one victim and mitigates market price reactions.
- CFTC Chair Michael Selig characterized the incident as a record $6.4 billion theft.
- Selig argued that the hack demonstrates why offshore crypto exchanges should register with the CFTC and meet U.S.-grade cybersecurity standards.
Sources · 6 sources
- CR
Crypto Rover@cryptoroverPost on X ·
CZ on Binance Hack: The $6.3 billion Binance hack may be the largest in USD terms, but Mt. Gox lost 650,000 BTC and affected nearly 100% of its users. The key difference? Binance can cover the losses and protect its users, which explains Bitcoin’s relatively small price reaction.
Open source - WG
Watcher.Guru@WatcherGuruPost on X ·
JUST IN: Binance founder CZ says $6.3 billion crypto hack is a "major disaster for the industry." "It hurts, but we survive." https://t.co/6Pm3DOBudY
Open source - KC
Kalshi Crypto@Kalshi_CryptoPost on X ·
JUST IN: Binance Founder CZ says $6.3 billion crypto hack is a "major disaster for the industry"
Open source - DE
Decrypt@DecryptMediaPost on X ·
Binance Hack Shows Why Offshore Exchanges Need US Oversight, CFTC Chair Says https://t.co/bNTe9z4qkT
Open source - CB
Crypto Banter@crypto_banterPost on X ·
🚨CZ ON BINANCE HACK: $6.3B IS THE BIGGEST IN USD TERMS, BUT NOT IN BTC TERMS! @cz_binance said the $6.3B Binance incident is the largest in USD value but not in $BTC terms, noting Mt. Gox involved 650,000 $BTC. He pointed to other factors that limit market impact, including the percentage of total Bitcoin supply affected (Mt. Gox was over 5%) and the share of users and assets impacted (Mt. Gox and FTX were near 100%). He said the key difference is that platforms covering losses means there is effectively only one victim, and that Binance is protecting its users.
Open source - DE
DecryptArticle ·
Binance Hack Shows Why Offshore Exchanges Need US Oversight, CFTC Chair Says Michael Selig said the record $6.4 billion theft shows why offshore exchanges should register with the CFTC and adopt U.S.-grade cybersecurity standards.
Open source