Tom Lee believes crypto's muted reaction to Binance's $6.3 billion hack is another sign that a bull market is underway.
Related Asset Ethereum #2 ETH · $2,253.30 24-hour change: down 0.69% 24H Down 0.69% 7D Down 3.06% 30D Down 16.26%
The BitMine chairman pointed to Ethereum's roughly 4% decline following the Oct. 29 theft, which was more than four times larger than the $1.5 billion stolen from Bybit in February 2025.
Ethereum fell 8% on the day the Bybit breach was disclosed and extended its losses to 20% within a week, according to Lee. The 20% comparison covers a full week after Bybit, while the Binance figure covers only the days since Oct. 29.
In a Nov. 2 statement, Lee described the latest market reaction as “very constructive,” arguing that the industry's response to an unprecedented security breach reflects growing resilience.
Related Company BitMine A Bitcoin network company
The prices quoted in BitMine's releases show Ethereum fell approximately 17% between Oct. 4 and Nov. 1.
Why Lee believes the hack shows crypto's growing strength
Lee cited six factors behind the relatively subdued market response, including Binance's ability to cover customer losses, swift intervention by stablecoin issuers and the absence of cascading failures across decentralized finance platforms.
The exchange initially committed more than $6 billion in company funds to cover the stolen assets, seeking to reassure customers that the theft would not leave them exposed to losses.
By Nov. 2, Binance said it had replenished approximately 95% of the affected assets using its own funding sources, including its corporate treasury and insurance reserves.
Binance also said users could independently verify that ten major cryptocurrencies, including Bitcoin, Ethereum, XRP and BNB, were backed at least 1:1 in its Oct. 31 proof-of-reserves snapshot.
Related Asset Bitcoin BTC · $76,928.46 24-hour change: down 1.40%
Blockchain analytics firm Elliptic verified approximately $2.85 billion in frozen or seized assets, accounting for 44% of the theft.
Tether and Circle were among the companies that restricted compromised tokens, while other issuers and blockchain networks took similar measures.
Related Asset XRP XRP · $1.25 24-hour change: up 0.31%
Lee also highlighted the speed of the criminal investigation. The FBI identified North Korea's TraderTraitor hacking group as responsible within two days, compared with previous incidents in which attribution took considerably longer.
Another distinction was the nature of the breach. Investigators have linked the Binance incident to compromised corporate infrastructure, rather than a failure in Ethereum or another blockchain's underlying protocol.
BitMine's Ethereum holding
BitMine has continued buying Ethereum despite its recent downturn.
The company acquired another 8,573 ETH during the latest reporting week, lifting its holdings to 6,060,506 tokens, equivalent to approximately 4.9% of Ethereum's circulating supply.
However, the value of its broader portfolio of crypto assets, cash, marketable securities and other investments declined from $17.4 billion on Oct. 4 to $14.5 billion on Nov. 1, despite the continued accumulation.
Elliptic estimated on Nov. 2 that approximately $3 billion remained in addresses linked to the theft, mostly as Bitcoin and Ethereum.
Binance is also working to source the remaining 5% of affected customer assets, comprising less-liquid tokens, while preparing another proof-of-reserves snapshot for Nov. 4.