Why Didn't Bitcoin Drop More? Binance's CZ Credits FBI

Binance founder Changpeng Zhao (CZ) credited the Federal Bureau of Investigation (FBI) and other US law enforcement agencies with helping prevent a larger drop in the Bitcoin ($BTC) price after the massive $6.3 billion security breach at the Binance cryptocurrency exchange.

Binance founder CZ commended the timely actions of the FBI, US Secret Service (USSS), and Internal Revenue Service (IRS) amid the massive security breach.

According to CZ's Nov. 1 post on X, US law enforcement agencies (FBI, USSS, IRS and more) helped "a lot" during the incident.

For instance, they helped with tracking and freezing funds.

According to the Binance co-founder, they were able to prevent an even sharper fall in the Bitcoin price.

"Not enough to express our appreciation in a tweet. 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," CZ stated.

This comes after the FBI officially identified North Korean hackers as being behind the record-breaking Binance hack.

FBI points to North Korean hackers behind the Binance attack

According to the FBI's Oct. 31 announcement, North Korea stole more than $6 billion worth of cryptocurrencies from the Binance crypto exchange on or about Oct. 29.

More specifically, the FBI identified the North Korean cybercrime group TraderTraitor as being behind the massive cryptocurrency theft.

It's a known North Korean hacker group that has stolen large amounts of cryptocurrencies before.

The FBI noted that investigators, together with the Secret Service and IRS Criminal Investigation, have tracked how the hackers were exchanging stolen cryptocurrencies mainly for Ethereum (ETH).

The FBI warned that these assets could be further laundered using decentralized finance (DeFi) protocols and instant cryptocurrency swap services.

The US authorities have called on cryptocurrency businesses and infrastructure providers to block transactions related to the cryptocurrency addresses used by the hackers to stop them from laundering these assets.

Specifically, the US authorities urged THORNode operators, remote procedure call (RPC) node operators, instant exchanges, blockchain analytics companies, DeFi platforms, etc., to block such transactions.

Apart from that, the FBI provided a list of the cryptocurrency addresses used by the hackers to allow other members of the cryptocurrency industry to detect and block suspicious transactions.

Bitcoin avoided an even deeper crash

The Binance security breach sent shock waves throughout the cryptocurrency market.

Bitcoin tumbled below $77,000 after the market reacted to the unprecedented crypto theft.

$BTC dropped to around $76,000 at one point, registering its lowest price in several weeks.

Meanwhile, other major cryptocurrencies like Ethereum, XRP, Solana (SOL), and BNB nosedived as the market reacted to the breach.

Fortunately, Bitcoin eventually found stability and was trading around $78,000 during the early Nov. 1 trading session.