Binance CEO Changpeng Zhao commented on the wave of hacks targeting major crypto exchanges, highlighting vulnerabilities and security measures.
Recurring Attacks on Crypto Exchanges
Changpeng Zhao noted a series of attacks on exchanges like ByBit, Phemex, and WazirX. Hackers stole significant cryptocurrency amounts from multi-sig cold storage by manipulating the frontend interface to hide the true transactions.
Zhao’s Remarks on the Breaches
Zhao pointed out that the attacks were not limited to a single vulnerability, as different exchanges used various multi-sig solution providers. The breaches were reportedly executed by the Lazarus Group, known for its advanced cyber capabilities.
Security Practices and Responses
Zhao defends halting withdrawals post-breach as a standard precaution. He mentioned Binance’s experience in 2019, when it paused withdrawals following a $40 million hack. ByBit and WazirX responded differently, with ByBit praised for transparency.
Zhao emphasized the importance of strong security measures and transparency in maintaining user trust in crypto exchanges amid growing cyber threats.
