Why Didn't Bitcoin Drop More? Binance's CZ Credits FBI
Binance founder Changpeng Zhao credited US law enforcement agencies with helping prevent a larger Bitcoin price drop after a $6.3 billion security breach.
Binance founder Changpeng Zhao (CZ) commended the timely actions of the Federal Bureau of Investigation (FBI), US Secret Service (USSS), and Internal Revenue Service (IRS) during the exchange's massive security breach.
According to CZ's Nov. 1 post on X, these agencies helped 'a lot' by tracking and freezing funds, preventing an even sharper fall in the Bitcoin price.
There are probably a lot of crypto bros not realizing that a lot of 'why bitcoin didn't drop even more?' credits go to them.
North Korean hackers behind the theft
The FBI officially identified the North Korean cybercrime group TraderTraitor as the perpetrator of the record-breaking theft, which occurred on or about Oct. 29.
The group stole more than $6 billion in cryptocurrencies from Binance, mainly exchanging them for Ethereum (ETH).
US authorities warned that these assets could be further laundered using decentralized finance (DeFi) protocols and instant swap services.
Industry response to the breach
The Binance security breach sent shockwaves through the cryptocurrency market, causing Bitcoin to tumble below $77,000.
BTC dropped to around $76,000 at one point, registering its lowest price in several weeks, while other major cryptocurrencies like Ethereum, XRP, Solana (SOL), and BNB also nosedived.
Fortunately, Bitcoin eventually found stability and was trading around $78,000 during the early Nov. 1 trading session.
The FBI provided a list of the cryptocurrency addresses used by the hackers and called on cryptocurrency businesses to block suspicious transactions.
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