CZ Calls for Formation of a Security Alliance in the Crypto Industry to Share Defensive Experience and Strengthen Cross-Platform Collaboration

According to TechFlow, on November 3, Binance founder Changpeng Zhao (CZ) responded for the first time to the theft of approximately $6.3 billion from Binance in an interview with Talking Tokens, saying that all hacks are preventable and that companies that go long periods without security incidents may become complacent. He noted that the frequency of hacker attacks on crypto exchanges has risen from about once a month to almost weekly, while AI is accelerating attackers' capabilities and industry defenses have not kept pace. He called on the crypto industry to form a security alliance to share best security practices, conduct cross-audits, and enable rapid coordination in freezing stolen funds, expressing hope to help bring the alliance to fruition.

On government cooperation, CZ said that he has not yet communicated with Trump or Washington regarding this incident, but hopes to receive assistance from the U.S. government. He also mentioned that when it comes to relevant communications with North Korea, perhaps only the United States and China are in a position to do so.

On market reaction, CZ said that on the day Binance was attacked, the crypto market fell less than tech stocks, a situation almost unheard of. He attributed this to Binance immediately confirming that user funds were safe and having the capacity to fully reimburse users. He also revealed that less than 10% of the stolen funds flowed to other centralized exchanges; some hardware wallets have also been attacked recently, and after comparing security across platforms, some users have moved funds back to Binance. Binance shifted from net outflows to net inflows on an hourly basis in less than 24 hours.

On the industry's future, CZ believes that AI will improve security in the crypto industry and software systems over the medium to long term, and may even uncover vulnerabilities in blockchain software before quantum computing breaks existing encryption systems. At the same time, AI will drive transaction speeds far beyond current levels, and blockchain may become the only financial technology capable of supporting such transaction speeds. He also urged retail investors to make greater use of asset protection tools and continue to monitor security developments in the industry.

Source: TechFlow