CZ Warns Crypto Community After $18,570 Hack on CoinMarketCap

Binance’s former CEO, Changpeng Zhao, commonly known as CZ, has issued an urgent warning to the cryptocurrency community following a series of high-profile hacks targeting major crypto websites. The incidents, which occurred within a span of two days, involved the compromise of CoinTelegraph and CoinMarketCap, both of which are trusted sources of information in the crypto world. CZ took to X to alert users about the potential risks, emphasizing the need for caution when using WalletConnect and urging users to be wary of even familiar sites.

The first incident involved CoinTelegraph, where malicious code was discovered in its ad system. This breach was quickly followed by an attack on CoinMarketCap, which resulted in 39 victims and a total loss of $18,570. CZ confirmed that CoinMarketCap, which is owned by Binance, would cover all losses incurred by the victims. The method of attack, targeting trusted information sources, highlights the evolving nature of cyber threats in the cryptocurrency space. It underscores that even reputable media outlets are not immune to such risks.

In response to these incidents, CZ advised users to be vigilant and double-check any links or authorizations they encounter. He also weighed in on the broader market trends, suggesting that everything before a new all-time high is a dip. This statement implies a bullish outlook, but CZ cautioned that only a select few strong coins are likely to reach new all-time highs. He advised investors to focus on projects with long-term staying power and real growth potential.

CZ also commented on Elon Musk’s ambitious plan to rewrite human knowledge with the next version of Grok, his AI chatbot. Musk’s initiative aims to correct errors and add missing information before retraining on the new data. CZ expressed interest in how this initiative will unfold, noting that it is a highly debated issue. His tone suggested a mix of curiosity and skepticism, indicating that he is closely monitoring the developments in AI technology.

The recent hacks and CZ’s warnings serve as a reminder of the evolving risks in the cryptocurrency industry. As cyber threats become more sophisticated, it is crucial for users to remain vigilant and for platforms to enhance their security measures. The incidents also highlight the importance of transparency and accountability within the industry, as well as the need for greater scrutiny and verification of information sources. By addressing these challenges collectively, the cryptocurrency community can work towards ensuring the safety and security of its users and the long-term viability of the industry.