The post Binance Co-Founder Changpeng Zhao Speaks on Recent ByBit $1.4 Billion Hacks appeared first on Coinpedia Fintech News
First the Wazirx hack, then the Phemex crypto heist, and now the Bybit $1.4 billion hack all that in a short time. One after the other security breach has raised serious concerns about user safety, causing fear and panic among crypto users. Therefore
Binance Co-Founder Changpeng Zhao (CZ) has stepped in, warning about the rise in crypto hacks and calling for stronger security measures.
Growing Hacking Concern In Crypto
In a recent tweet post, Binance CZ pointed out a troubling pattern in these hacks. He explained that hackers have been able to steal large amounts of crypto from multi-signature “cold storage” wallets.
He mentioned that in Bybit’s case, hackers managed to manipulate the front-end interface, making it appear as if a legitimate transaction was taking place. However, the actual transaction being signed was entirely different. This raises serious questions about the vulnerabilities in multi-signature security systems.
What’s worse is that these hacked exchanges used different security providers. The hacker group Lazarus is likely behind these attacks, showing they are very skilled. It’s still unclear if they found flaws in the security devices, the servers, or both.
CZ Suggestion Pause Withdrawals!
In response to these security breaches, CZ suggested that crypto exchanges should consider pausing withdrawals immediately after an attack. He believes that before resuming operations, exchanges need to investigate thoroughly how the hackers gained access, which systems were compromised, and whether security has been completely restored.
CZ recalled a 2019 Binance hack, where withdrawals were paused for a week which caused little panic among users, but when they reopened, more deposits came in than withdrawals.
CZ Praised Bybit’s CEO
Meanwhile, CZ applauded Bybit’s CEO, Ben Zhou, for staying calm and being transparent during the crisis. He compared this to other exchanges like FTX and WazirX, where a lack of openness led to bigger problems.
At last, CZ noted that security should never be taken lightly and urged the crypto community to stay informed and choose safe platforms.