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Binance founder Changpeng Zhao (CZ) warned that traditional banks may face greater cyberattack risks than cryptocurrency exchanges following Binance's USD 6.34 billion hack.
Speaking in a November 3 interview, Zhao said artificial intelligence could make attacks against financial institutions more common. His comments followed Binance's release of new findings about the October 29 breach, which affected several cryptocurrency wallets.
Zhao also called for greater cooperation between financial institutions and stronger security measures to address emerging cyber threats.
Zhao argued that cryptocurrency exchanges often attract hackers because stolen digital assets can be transferred quickly. He said banks could face similar attacks as criminals gain access to more advanced tools.
“If a crypto exchange can be hacked, banks are in a worse position, in my opinion,” Zhao said.
He explained that exchanges such as Binance face constant attacks because they hold large amounts of cryptocurrency. Traditional banks also operate financial systems that could become targets as cyberattack methods advance.
Zhao warned that artificial intelligence could help criminals identify weaknesses in financial systems faster. He urged institutions to strengthen their defenses using the same technology.
“The industry needs to use AI to prevent AI hacks,” he said.
Zhao also proposed common security standards and greater cooperation between banks and cryptocurrency companies. He said discussions were underway, although no formal agreement had been reached.
Binance's November 3 security report described a coordinated attack involving compromised employee devices and internal systems. The investigation found that attackers used fake recruitment interviews, malicious software and an internal AI tool to gain access.
In October, attackers exploited a compromised engineer's computer and internal AI infrastructure to reach other employees. They later obtained credentials that allowed them to deploy malicious software within Binance's wallet operations.
The attackers subsequently gained unauthorized access to an internal wallet-signing service. This enabled transfers involving Bitcoin, XRP, Solana and other assets across multiple networks.
Binance said it had rebuilt affected systems, replaced compromised devices and strengthened its security controls. The exchange also expanded AI-based monitoring to detect unusual activity.
Investigators have not established that autonomous AI agents directed the laundering of stolen funds. The exchange's findings instead identify compromised AI infrastructure as part of the original intrusion.
Zhao also acknowledged security weaknesses exposed by the attack.
“A hack of this scale means serious security failures occurred,” he wrote on X.
He urged Binance to explain the breach and make improvements. As a shareholder, Zhao said he expected the company to accept responsibility and learn from criticism.
Meanwhile, Binance reported that approximately USD 2.85 billion in affected assets had been frozen or intercepted. The exchange also said it had replenished 98% of impacted token assets by October 31.
Binance CEO Richard Teng disclosed USD 5.28 billion in net outflows during a separate 46-hour period ending Tuesday. Zhao later cited public data indicating USD 2.8 billion in net inflows over 24 hours.
The FBI attributed the theft to North Korea's TraderTraitor hacking group on October 31. Investigators reported that the attackers were converting stolen assets into Ethereum.
North Korea rejected the allegations. On November 4, Kim Yo Jong described the accusation as evidence of Washington's “hostile policy” toward Pyongyang.
Her remarks followed Tuesday's statement dismissing the hacking allegations as a “grave political provocation.” Kim accused Washington of repeatedly blaming North Korea for major international cybercrimes.
She also rejected renewed diplomatic talks under current conditions.
“It is our clear stand that we have no need to sit face to face with such unreliable and hostile persons,” Kim said.
Kim maintained that dialogue remained an option for peace but was not necessarily in North Korea's interests. Her comments followed President Donald Trump's earlier proposal to meet Kim Jong Un later this month.
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