Grayscale Research Director Says Security Losses as a Percentage of Total Crypto Market Value Decrease

Grayscale Research Director Zach Pandl published an analysis stating that despite Binance experiencing a hack exceeding $6 billion on October 19, which pushed security losses in the crypto industry to a new high of over $8 billion in 2026, the proportion of security losses relative to the total crypto market value has significantly decreased. Currently, Binance has covered 95% of the affected assets, and customers will not bear the losses. Stablecoin issuers such as Tether and Circle have assisted in freezing approximately $2.9 billion of the stolen funds, accounting for about 45% of the total stolen amount, which is expected to be returned to Binance. Zach Pandl believes that this incident will have a short-term impact on market confidence but will ultimately drive all exchanges to establish stricter security practices, highlighting the importance of institutional-grade custody and prompting more U.S. investors to gain exposure to crypto assets through trading products offered by exchanges that provide protections such as isolated accounts, cold storage, multi-signature, and commercial insurance.

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