Binance's CZ Warns of Growing Crypto Hacks After $1.4B Bybit Breach

Binance Co-Founder Changpeng Zhao Speaks on Recent ByBit $1.4 Billion Hacks

In the wake of a series of high-profile hacks targeting cryptocurrency exchanges, Binance Co-Founder Changpeng Zhao (CZ) has sounded the alarm on the increasing threat to user safety in the crypto world. The latest incident, a $1.4 billion hack at Bybit, has raised serious concerns and prompted CZ to call for stronger security measures.

CZ took to Twitter to highlight the growing pattern of hacks targeting multi-signature "cold storage" wallets. In the case of Bybit, hackers manipulated the front-end interface, tricking users into approving illegitimate transactions. The sophistication of these attacks suggests that the notorious hacker group Lazarus is likely behind them, exploiting vulnerabilities in security systems.

In response to these security breaches, CZ suggested that crypto exchanges should consider pausing withdrawals immediately after an attack. He emphasized the importance of thorough investigation into how hackers gained access, which systems were compromised, and whether security has been fully restored before resuming operations.

CZ praised Bybit's CEO, Ben Zhou, for maintaining transparency during the crisis, contrasting this with other exchanges like FTX and WazirX, where a lack of openness led to bigger problems. He urged the crypto community to stay informed and choose safe platforms, emphasizing that security should never be taken lightly.