[Grayscale: Binance Incident Will Prompt Exchanges to Strengthen Security and Highlight the Importance of Institutional Custody] Zach Pandl, Head of Research at Grayscale, analyzed that the theft of over $6 billion in assets from Binance in October brings the total crypto security losses for 2026 to over $8 billion, a new high. Excluding this incident, the losses in 2026 would be comparable to last year. More importantly, the proportion of crypto security losses to total market capitalization has been declining in the long term. Pandl stated that Binance has quickly restored customer positions, with 95% of the affected assets fully replenished. The remaining 5% of less liquid tokens will require more time, but Binance customers will not incur losses. Approximately $2.9 billion (about 45%) of the stolen funds has been frozen by stablecoin issuers such as Tether and Circle, and these funds are expected to be returned to Binance. Pandl believes that while this incident may temporarily damage market confidence, it will ultimately prompt all exchanges to strengthen their security practices and highlight the importance of institutional custody.