A $1.4 billion hack at Bybit prompted former Binance CEO Changpeng Zhao, known as CZ, to commend Bybit’s chief executive, Ben Zhao, for his transparent and measured response.
Massive Bybit Hack Spurs CZ to Warn: ‘We Should Never Take Security for Granted’
The breach, linked to sophisticated North Korean hackers, targeted Bybit’s multi-sig cold storage. Attackers manipulated front-end processes to authorize illegitimate transactions. While several exchanges have faced similar exploits, CZ remarked that Bybit’s immediate communication and thorough investigation stood out, drawing industrywide attention to its handling.
CZ, recalling Binance’s 2019 security breach, emphasized halting withdrawals to protect funds while the attack vector is identified. Though controversial, pausing operations can prevent further losses and allow time to secure systems. He noted that this approach often reassures users once the exchange fully addresses the vulnerabilities.
“My intention was to share a practical approach based on my experiences and observations, yet there is no absolute right or wrong in either approach,” CZ wrote on X. “My guiding principle is always to lean on the safer side. After any security incident, pause everything, make sure we fully understand what happened, how hackers penetrated the systems, which devices were compromised, triple-check all is safe, and then resume operations.”
Ben Zhao’s openness from the outset earned particular praise. CZ highlighted how transparent leadership can calm user anxieties and preserve trust. He noted that Bybit balanced stability and information sharing effectively, ensuring users stayed informed without triggering panic. This measured strategy, CZ suggested, set Bybit apart from several exchanges that were hacked in the past. The former Binance CEO said:
Ben did a good job maintaining transparent communication and calmness in dealing with a challenging situation. That shows a sharp contrast to other less transparent CEOs, like WazirX, FTX, etc.
Alongside CZ, other observers saw Ben Zhao’s handling of the matter as a blueprint for how exchanges should respond when security threats emerge. In CZ’s view, transparency and thoroughness remain the foundation for rebuilding trust and fortifying the entire cryptocurrency ecosystem. Such measures could shield future user assets.
“Most importantly,” the former Binance boss said. “We should never take security for granted. It is important to learn about security yourself so that you can choose the right tools for your needs.”
