The post Binance Co-Founder Changpeng Zhao Speaks on Recent ByBit $1.4 Billion Hacks appeared on BitcoinEthereumNews.com.

First WazirX, then Phemex, and now Bybit—three major crypto hacks in a short span. The latest breach, a staggering $1.4 billion heist, has raised serious concerns about security, leaving users worried about their funds. Binance Co-Founder Changpeng Zhao (CZ) has now weighed in, warning about the rising number of hacks and stressing the need for stronger security measures. CZ Flags a Disturbing Pattern in Crypto Hacks In a recent tweet, CZ pointed out a worrying trend: hackers are successfully targeting multi-signature “cold storage” wallets to steal large amounts of crypto. Some thoughts on the recent hack(s). There is a pattern where hackers were able to steal large amounts of crypto from multi-sig “cold storage” solutions, as with ByBit, Phemex, WazirX and potentially others. In the most recent ByBit case, the hackers were able to make the… — CZ 🔶 BNB (@cz_binance) February 22, 2025 He explained that in Bybit’s case, attackers manipulated the front-end interface, making it look like a normal transaction. But behind the scenes, an entirely different transaction was being signed. This exposes serious flaws in multi-signature security systems. Are Hackers Exploiting Security Providers? What’s even more concerning is that these hacked exchanges used different security providers. This suggests that hackers, likely the notorious Lazarus group, have found vulnerabilities that go beyond a single system. It’s still unclear whether they are exploiting weaknesses in security devices, servers, or both. CZ’s Advice: Pause Withdrawals After a Hack To limit the damage from such breaches, CZ suggested that crypto exchanges should pause withdrawals immediately after detecting an attack. He emphasized that before reopening, exchanges must fully investigate how the hack happened, which systems were compromised, and whether security has been fully restored. He recalled Binance’s 2019 hack, where withdrawals were paused for a week. While the move initially caused some…

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Filed under: News - @ February 22, 2025 5:26 pm