Zhao Says Binance Hack Smaller Than Mt. Gox by BTC Amount, Share of Supply

Binance founder Changpeng Zhao said the recent hack of the exchange was the largest ever in dollar terms, but smaller than the Mt. Gox hack when measured by the amount of Bitcoin involved and its share of total supply.

In a post on X on Oct. 30, Zhao wrote that the Binance hack was the biggest on record in dollar terms, but smaller than the Mt. Gox hack in terms of BTC volume and its proportion of total supply.

He said 650,000 BTC was stolen in the Mt. Gox hack. The market impact of a hacking incident, he added, should be assessed by taking into account the size of the loss relative to Bitcoin's total supply, the number of affected users and the share of assets hit, and whether the affected entity or platform fully reimburses customers.

Zhao also argued that virtually all users and assets were affected in the Mt. Gox and FTX incidents. If an exchange fully covers losses, as Binance does, the damage is confined to the exchange itself, he said.

Meanwhile, Binance co-founder Yi He said the net loss from the latest hack exceeded $3 billion, representing more than 2% of Binance user assets and assets included in its publicly disclosed reserves.