Binance founder says the industry will become more robust despite hacking damage worth 8 trillion won

In a Nikkei online interview, “Hacking is inevitable… subsequent response is important.”

(Tokyo = Yonhap News) Correspondent Doyeon Lee = Changpeng Zhao (CZ), the founder of Binance, which suffered the largest cryptocurrency theft in history, claimed that “the industry will become more solid and safe” after this incident.

In an online interview with the Nippon Keizai Shimbun (Nikkei) published on the 9th, founder Zao said this about the recent asset leak incident, saying, "User assets are protected through (customer protection) funds, etc."

At the end of last month, hacking damage worth about $6.3 billion (8.5 trillion won) occurred on Binance, and the U.S. Federal Bureau of Investigation (FBI) pointed to a North Korean hacking organization as the cause.

Regarding this, founder Zhao emphasized that “hacking itself cannot be avoided,” and “what is important is how you respond to it.”

At the same time, he emphasized that user assets will be protected through the self-established emergency fund 'User Asset Protection Fund' (SAFU).

In response to criticism that virtual currency is constantly being used for money laundering and related fraudulent activities, he said, "Virtual currency exchanges are working on security measures, including money laundering," and claimed, "They are under stricter surveillance than banks from supervisory authorities. Regulatory responses are fully possible."

Founder Zhao, who founded Binance in 2017, was indicted on charges of violating anti-money laundering regulations in 2023. He admitted to the charges, paid $4.3 billion (5.8 trillion won) in fines and confiscations, and resigned from his position as CEO of Binance.

Zhao and Binance lobbied for a pardon after President Donald Trump returned to power, and eventually received a pardon in October of last year.

In this interview, he said about his future return to management, “I have no intention of going back now.”