Cryptocurrency platforms spend heavily on preventing the theft of digital assets. Yet a major breach creates another financial and operational problem that is more difficult to quantify: what happens when customers lose confidence and head for the exits?

The distinction matters because the value stolen in a cyberattack is not necessarily a measure of the liquidity an exchange will need in the following hours and days.

This question has returned to attention following reports around a suspected security incident involving Binance. Security is already a significant issue for the wider cryptocurrency sector. According to a recent Digital Journal assessment of crypto security, estimates compiled by Immunefi put losses at about $972…