Binance hack may be ‘temporary setback’ for crypto, Grayscale’s Pandl says

Binance’s $6.3 billion hack could temporarily hurt confidence in crypto markets but would ultimately lead to stronger security practices across exchanges, according to Grayscale.

“It also underscores the importance of institutional custody, such as offered by US-based crypto [exchange-traded products],” said Grayscale’s head of research, Zach Pandl, in a Tuesday report.

“These vehicles hold their assets at state-chartered banks and qualified custodians, typically offering offline storage, multi-signature wallets, SOC attestations and insurance policies,” he added.

Binance suffered a record $6.3 billion hack Thursday and pledged to cover all customer losses. The FBI attributed the attack to North Korea. Kim Yo Jong, sister of North Korean leader Kim Jong Un, dismissed the allegations as “absurd rhetoric.”