#BinanceTurns8

This paper analyzes the spillover effects of the "Binance Incident" in the cryptocurrency market on financial markets. We integrate event study with Lasso to predict the normal returns during the event window, which outperforms traditional market models. Based on the new approach, we find positive effects on precious metal markets due to their safe-haven nature. In contrast, energy markets exhibit negative effects due to reduced investor confidence and weaker safe-haven attributes, and fiat currencies show negligible reactions. Finally, we document that the overall impact of the "Binance Incident" on financial markets is negative.