CZ says Binance can absorb hack losses and sees no contagion risk for the crypto market

Binance co-founder Changpeng Zhao, known on X as @cz_binance, said the market’s limited 2% to 3% decline after what he described as the largest crypto hack in history reflects one key point: the incident is not expected to trigger a broader chain reaction across the industry. In his view, the event differs from collapses such as FTX because it does not create the conditions for cascading bankruptcies, forced liquidations, or additional losses spreading to other firms. Zhao said the stolen funds came from Binance, which he described as the world’s largest exchange, and added that the company has sufficient funds to cover the losses. Because of that, he argued, other parties should not be affected. He framed the hack as an isolated incident involving one of the industry’s best-capitalized participants rather than a systemic failure that could destabilize the wider market. He also said there is no contagion risk, no bankruptcy risk, and no domino effect tied to the event.