Binance Founder Calls for Industry-Wide Security Alliance After Record Breach
Cointime reports: In the early hours of October 29, Binance suffered the largest hack in crypto history, with approximately $6.3 billion stolen. The FBI later attributed the attack to North Korea’s TraderTraitor operation. In interviews with Talking Tokens and CoinDesk, Binance founder Changpeng Zhao (CZ) reflected on the incident, the industry’s response, and the path forward.
Response and User Trust
CZ, who is no longer involved in Binance’s day-to-day management, focused on community communication. “I wanted users to know they wouldn’t bear the losses and that their funds were safe,” he said. Binance resumed withdrawals within two days and covered all losses. Despite initial outflows of about $3.6 billion—only 2% of assets—net inflows returned within 24 hours, which CZ sees as a strong signal of user trust. “I expected 10-30% to be withdrawn, but only 2% left,” he noted. “That speaks volumes about the trust we’ve built over nine years.”
From Exchange Security to National Security
CZ emphasized that the incident transcends a single company’s security problem. “This is a wake-up call for the entire financial system,” he said. “With tokenized stocks, RWA, and stablecoins linked to government bonds, crypto is deeply intertwined with traditional finance. A breach of this scale has real economic implications across sectors.” He also warned that as AI enhances attackers’ capabilities, traditional banks face similar risks. “Banks are not safe just because they’re not crypto,” he added.
Industry Collaboration and AI Defense
CZ praised the rapid, decentralized response from Tether, Circle, law enforcement, and even competitors. “Within minutes, Tether and Circle froze a significant portion of the stolen funds,” he said. “No central coordinator was needed—the industry came together naturally.” He called for the creation of an industry security alliance to share best practices, conduct cross-audits, and help freeze funds during incidents. “We must use AI to defend against AI,” he stressed. “Attackers only need to find one vulnerability; defenders must find them all. AI can help us discover hidden flaws.”
Mainstream Adoption and Market Outlook
Despite short-term pain, CZ remains optimistic. “AI will ultimately make crypto and financial systems more secure,” he said. “The current wave of attacks is forcing us to upgrade our defenses.” He also noted that the market reaction was relatively calm, with crypto falling less than tech stocks on the day of the hack. “The trust we’ve built and the transparency of blockchain helped contain the fallout,” he said. “I remain bullish long-term, though I don’t make price predictions.”
For retail users, CZ advised learning about security tools and staying vigilant. “It may feel like nowhere is safe right now, but things will improve. Until then, be more cautious than ever.”
