The head of Grayscale Research stated that the proportion of security losses to the total market value of cryptocurrencies has significantly decreased

Zach Pandl, the head of research at Grayscale, published an analysis article pointing out that although the hacking attack on Binance on October 19 raised the security losses in the cryptocurrency industry to over $8 billion, a new high for 2026, the proportion of security losses relative to the total market value of cryptocurrencies has significantly decreased in the long term. Currently, Binance has covered 95% of the affected assets, and customers will not bear the losses.

Stablecoin issuers like Tether and Circle have assisted in freezing approximately $2.9 billion of stolen funds, accounting for about 45% of the total stolen amount, which is expected to be returned to Binance. Zach Pandl believes that while this incident has temporarily impacted market confidence, it will ultimately drive all exchanges to establish stricter security practices, while also highlighting the importance of institutional-grade custody, prompting more U.S. investors to gain exposure to cryptocurrency assets through exchanges that offer protections such as segregated accounts, cold storage, multi-signature, and commercial insurance.