Key Notes
- Zhao called for crypto companies to coordinate on audits and asset freezes.
- He welcomed help from the US and China and said he had not contacted Trump about the hack.
- He warned that AI could make attacks more frequent and urged companies to use it to improve defenses.
Binance founder Changpeng “CZ” Zhao called for a crypto security alliance after the $6.3 billion hack, saying exchanges could audit one another’s defenses and help freeze stolen funds faster. He also said he would welcome help from the US and China in dealing with North Korea, which the FBI blamed for the theft.
Zhao laid out those ideas in a 19-minute Talking Tokens interview with Jacquelyn Melinek. Talking Tokens says Binance sponsors the show and did not commission this episode.
How CZ Learned About the Hack
Zhao said he was getting ready for bed around midnight in the United Arab Emirates when the Binance team told him the exchange was under attack. He had seen reports on X around the same time but did not yet know if they were real. Zhao, who no longer runs Binance, said he focused on communicating with users while the company contained the breach.
He argued that enough attention and investment can prevent individual breaches and that companies can grow complacent when they go long periods without an incident. He also acknowledged that an exchange cannot eliminate the risk entirely. Binance’s initial findings traced the intrusion through several employees’ devices before attackers reached the wallet-signing service.
Why CZ Wants Help From Washington and Beijing
Zhao said he had not spoken to President Donald Trump or anyone in Washington about the incident. He named the US and China as governments that might be able to speak with North Korea. His argument for government involvement was that state-backed attackers also target banks, and that stablecoins and tokenized assets increasingly connect crypto to traditional finance.
Within the industry, Zhao said there had been discussions about sharing security practices, reviewing one another’s systems and coordinating freezes after a theft. He said he would like to help shape an alliance. He did not name members or announce a launch.
AI May Find Software Flaws Before Quantum Computers Break Encryption
Zhao said AI could make attacks more frequent and urged crypto companies to work with AI developers on defenses. He contrasted the occasional hacks he used to see with several incidents reported on a single recent day. That was his observation, rather than a count of how many attacks used AI.
He also raised the possibility that AI could find exploitable bugs in blockchain software before quantum computers can break the cryptography those networks use. The risks are different: attackers can exploit a software flaw without breaking the underlying encryption.
Why Zhao Thinks the Market Held Up
Zhao credited Binance’s pledge to absorb the losses and its early statements that customer assets were unaffected for helping contain the market reaction. The selloff still took Bitcoin below $78,500 during the initial turmoil. Binance later began reopening withdrawals in phases.
Zhao said he remains bullish and discussed the possibility that a shock could mark a market bottom. He stopped short of calling a bottom or predicting when prices would rise.
Why CZ Prefers Binance to Self-Custody
Zhao pointed to hardware wallet supply chain attacks and seed phrase flaws to argue that managing your own keys comes with risks, even if you follow the instructions. He said Binance’s decision to cover this incident was a reason some users might prefer the exchange. That is the founder’s view: using an exchange means trusting it to safeguard assets and honor withdrawals, while self-custody puts responsibility for keys and backups on the holder.
Where to Skip in the Interview
- 00:44 — First alert
- 02:42 — Preventing hacks
- 06:58 — Government help
- 08:15 — AI defenses
- 09:51 — Security alliance
- 12:58 — Market outlook
- 15:35 — Custody tradeoffs
CoinScreamer’s hack reconstruction traces how the attackers reached Binance’s wallet systems. The Talking Tokens episode is also available on X.
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