Uzman Coin1 hour agoCrypto2 min read

Warning from CZ about attacks: "Banks are at greater risk..."

In his interview on Coindesk, Changpeng Zhao warned that the financial system was under threat after the $6.3 billion attack and that more attacks would come.

Quick Look

After the $6.3 billion hack attack on the Binance exchange last week, Changpeng Zhao stated in his YouTube interview with Coindesk that artificial intelligence should be integrated into cyber defense systems, more attacks will come and the traditional financial world is also under threat.

AI-generated summary

Why It Matters

There was a $6.3 billion hack attack on the Binance exchange last week. At the time of the attack, Changpeng Zhao was in the United Arab Emirates and heard from Binance employees. The platform was operational again in two days.

Font size

While the $6.3 billion hack attack that the Binance exchange experienced last week created fear not only in the crypto world but also in the financial world, important warnings also came from Changpeng Zhao on the subject. In his Youtube interview with Coindesk, Zhao stated that artificial intelligence should now be used in defense mechanisms.

“Users will not be harmed”

Stating that it was close to midnight in the United Arab Emirates when the attack occurred and that he received news from Binance employees, CZ said:

"Actually, I do not manage the company anymore, but since I have close relations with the employees and the crypto community, they informed me. Binance reactivated the platform in two days. This was very important. I thought there would be more money outflow, but the users showed their trust in the exchange."

“There will be more attacks”

Stating that artificial intelligence is especially used in such attacks, CZ said that banks are also under threat:

"This attack concerns not only the crypto sector, but the entire financial system. Yes, the crypto world is attacked more because it is easier to transfer the digital assets held inside... The reward is bigger... But the traditional finance world should also pay attention. Crypto companies have gained experience, but others have not. I think they are under greater threat... In the past, such attacks used to happen maybe every 6 months, now they happen almost every day. Yesterday, a cryptocurrency exchange in Brazil was hacked. There were problems in some blockchains."

“A security alliance should be formed…”

Stating that hackers attack platforms through a single vulnerability, CZ said that companies have to find all the bugs, not just one:

"For an attacker to be successful, it is enough to find only one vulnerability in the system... However, those who defend the system must detect and close all the vulnerabilities. Therefore, I think the attackers' job is easier than the defenders. Crypto companies, banks and other financial institutions should integrate artificial intelligence into their cyber defense systems much more intensively. In fact, the crypto industry must establish common security standards and form a security alliance..."

What to Watch

AI outlook — possibilities, not facts

Crypto companies and banks will integrate artificial intelligence more intensively into their cyber defense systems.
Likely · Within months
An effort will be made to establish common security standards and a security alliance in the crypto industry.
Possible · Within months

Open Questions

Who are responsible for the attack?
Can the entire $6.3 billion loss be recovered?
In which areas were Binance's security vulnerabilities?
Which organizations will the envisaged security alliance include?