CZ: Calls for Crypto Industry to Form Security Alliance, Share Defense Experiences and Strengthen Cross-Platform Collaboration

On November 03, Binance founder Zhao Changpeng (CZ) responded for the first time in an interview with Talking Tokens regarding the approximately $6.3 billion stolen incident at Binance, stating that all hacker attacks can be prevented, and enterprises tend to become complacent after long periods without security incidents. He pointed out that the frequency of hacker attacks on crypto exchanges has risen from about once a month to almost weekly, with AI accelerating the development of attack capabilities while industry defensive capabilities have yet to catch up. He called on the crypto industry to form a security alliance, share best security practices, conduct cross-audits, and achieve rapid coordination in freezing stolen funds, expressing hope to help bring the alliance into reality.

Regarding government cooperation, CZ stated that he has not yet communicated with Trump or Washington about this incident but hopes to receive assistance from the U.S. government. He also mentioned that regarding relevant communication with North Korea, perhaps only the United States and China possess the necessary conditions.

Speaking of market reactions, CZ stated that on the day Binance was attacked, the crypto market's decline was smaller than that of tech stocks, a situation almost unheard of. He believes this is due to Binance promptly confirming user fund security and possessing the ability to provide full compensation. He also revealed that less than 10% of the stolen funds flowed to other centralized exchanges; recently, some hardware wallets were also targeted by attacks, leading some users to compare the security across different platforms and move their funds back to Binance. Binance saw its net outflow turn into a net inflow within less than 24 hours, calculated on an hourly basis.

Regarding the future of the industry, CZ believes that AI will enhance the security of the crypto sector and software systems in the mid-to-long term, potentially identifying vulnerabilities in blockchain software even before quantum computing breaks existing encryption systems. Meanwhile, AI will drive trading speeds far beyond current levels, making blockchain likely the only financial technology capable of supporting such transaction speeds. He also reminded retail investors to strengthen their use of asset protection tools and continue monitoring industry security developments closely.