Binance’s Changpeng Zhao Flags Security Risks After $1.4B Bybit Hack
The post Binance’s Changpeng Zhao Flags Security Risks After $1.4B Bybit Hack appeared first on Coinpedia Fintech News
First WazirX, then Phemex, and now Bybit—three major crypto hacks in a short span. The latest breach, a staggering $1.4 billion heist, has raised serious concerns about security, leaving users worried about their funds.
Binance Co-Founder Changpeng Zhao (CZ) has now weighed in, warning about the rising number of hacks and stressing the need for stronger security measures.
CZ Flags a Disturbing Pattern in Crypto Hacks
In a recent tweet, CZ pointed out a worrying trend: hackers are successfully targeting multi-signature “cold storage” wallets to steal large amounts of crypto.
He explained that in Bybit’s case, attackers manipulated the front-end interface, making it look like a normal transaction. But behind the scenes, an entirely different transaction was being signed. This exposes serious flaws in multi-signature security systems.
Are Hackers Exploiting Security Providers?
What’s even more concerning is that these hacked exchanges used different security providers. This suggests that hackers, likely the notorious Lazarus group, have found vulnerabilities that go beyond a single system. It’s still unclear whether they are exploiting weaknesses in security devices, servers, or both.
CZ’s Advice: Pause Withdrawals After a Hack
To limit the damage from such breaches, CZ suggested that crypto exchanges should pause withdrawals immediately after detecting an attack. He emphasized that before reopening, exchanges must fully investigate how the hack happened, which systems were compromised, and whether security has been fully restored.
He recalled Binance’s 2019 hack, where withdrawals were paused for a week. While the move initially caused some panic, user confidence was restored, and when withdrawals resumed, more deposits flowed in than withdrawals.
CZ Praises Bybit’s Response, Criticizes Others
Meanwhile, CZ applauded Bybit’s CEO, Ben Zhou, for staying calm and being transparent during the crisis. He compared this to other exchanges like FTX and WazirX, where a lack of openness led to bigger problems.
At last, CZ noted that security should never be taken lightly and urged the crypto community to stay informed and choose safe platforms.
Hackers are getting smarter, attacks are getting bolder, and the risks are getting bigger. The question is—are crypto exchanges prepared?
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