Binance Founder Reflects on Bybit Hack, Prioritizes Security

The recent Bybit hack through which the notorious Lazarus Group stole $1.4 billion in ETH has triggered alarm in the crypto space. Binance founder Zhangpeng Zhao took to X to reflect on increasing crypto thefts, including the massive Bybit heist. In addition, CZ emphasized the importance of security and commended Bybit CEO Ben Zhou for his transparent handling and steady leadership throughout the ordeal.

Binance Founder Commends Bybit CEO

Reflecting on the recent $1.4 billion Bybit heist, Binance founder Zhangpeng Zhao stressed the significance of security. In his recent X post, CZ appreciated Bybit CEO Ben Zhou for his thoughtful and transparent moves following the theft.

Further, the Binance founder drew parallels between the Bybit hack and other infamous crypto thefts, including the FTX and WazirX incidents. Highlighting Zhou’s transparency, CZ stated,

I am sure Ben made the best decision based on the info he had…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.

Is Withdrawal Halt a Security Measure? CZ Explains

In the aftermath of the Bybit incident, CZ, the Binance founder, recommended that the exchange suspend withdrawals as a crucial security measure. “Might suggest to halt all withdrawals for a bit as a standard security precaution,” said CZ, assuring complete support for the exchange.

While many questioned CZ’s suggestion, he clarified via his recent X post that his approach was security-focused. Drawing from his own experience, CZ suggested that although the halt might trigger panic, it ultimately prioritizes safety. After Binance halted withdrawals for a week due to the $40 million hack in 2019, the exchange experienced an unexpected surge in deposits over withdrawals, said CZ.

Moreover, the Binance founder reiterated his guiding principle, which is to “lean on the safer side.” He recommended that following a security incident, companies should pause operations, meticulously investigate the breach, and ensure all systems are secure before restarting.

Ben Zhou Agrees with CZ: Here’s What He Said

In response to CZ’s message, Ben Zhou expressed his complete agreement with the Binance founder’s suggestions. He added that the team would have halted withdrawals if the breach had involved a penetration of Binance’s internal systems, including the withdrawal system or a hot wallet.

However, regarding yesterday’s Bybit hack, the team didn’t need to intervene with the internal system as the hackers breached the ETH cold wallet. Zhou clarified that the platform’s ability to maintain normal operations, including withdrawals and system functions, was due to the isolated nature of the breach.

Further, Zhou also extended his appreciation to Binance and CZ for their timely and invaluable support throughout the incident. He stated,

Binance and CZ was among many of the partners and industry leaders that offered to help us during last night fiasco. We are extremely grateful and simply overwhelmed with all the support that we got. This was a truly tragic event for Bybit but the industry showed strength united together. I have faith that it’s only up from now.

The $1.4B Bybit Hack: What You Should Know

Notably, the Lazarus Group stole $1.4 billion in ETH from Bybit via a major crypto theft. To boost the platform’s stability, many exchanges, including Binance, have extended their support. Millions of assets were sent to the exchange from multiple wallets.

As recently unveiled by Zhou, the recent hack has left much of the company’s assets unaffected. Bybit’s cold wallet holds nearly 3 billion USDTs. In addition, the platform reserve includes $1.2 billion in ETH, $6.71 billion in BTC, $2.45 billion in MNT, and $652 million in USDC.

In a recent development, the Binance founder debunked rumors that Binance transferred millions of ETH to Bybit. Instead, he attributed these transactions to users or whales.