CZ: The impact of a theft cannot be assessed solely by its dollar value; what matters is whether the platform can fully cover the losses
On Oct. 31, CZ responded to discussions about the scale of the Binance theft and the BTC price reaction, saying that while the $6.3 billion theft was the largest by dollar value, it was not the largest in terms of the amount of BTC involved. He cited the Mt. Gox incident, which involved 650,000 BTC—more than 5% of the BTC supply at the time—and said that market impact cannot be assessed solely by dollar value.
He said it is also important to consider the number of affected users and the proportion of their assets that were affected. According to him, in the Mt. Gox and FTX incidents, nearly all users and their assets were affected. The more important question is who ultimately bears the losses, and whether the platform can cover them in full rather than passing them on to users.
CZ said the incident remains a major disaster for the industry, Binance, and him personally, but that they can weather the shock. He stressed: “Most importantly, we protect our users.”
On Oct. 31, CZ responded to discussions about the scale of the Binance theft and the BTC price reaction, saying that while the $6.3 billion theft was the largest by dollar value, it was not the largest in terms of the amount of BTC involved. He cited the Mt. Gox incident, which involved 650,000 BTC—more than 5% of the BTC supply at the time—and said that market impact cannot be assessed solely by dollar value.
He said it is also important to consider the number of affected users and the proportion of their assets that were affected. According to him, in the Mt. Gox and FTX incidents, nearly all users and their assets were affected. The more important question is who ultimately bears the losses, and whether the platform can cover them in full rather than passing them on to users.
CZ said the incident remains a major disaster for the industry, Binance, and him personally, but that they can weather the shock. He stressed: “Most importantly, we protect our users.”