WuBlockchain
Bybit co-founder and CEO Ben Zhou said exchanges should plan for attacks to happen, focusing on limiting damage and ensuring the business can survive. He discussed the shift in strategy in an interview with The Block on April 21, 2026.
Why it matters
Bybit previously relied on a third party for its cold wallet. It has since built a banking-grade hardware wallet system that requires staff to be physically present to unlock the HSM.
Market impact
Zhou said systems like this are costly and time-consuming to build, leaving many projects reliant on third parties. He also emphasized social engineering and layered protections, broadening exchange security beyond technical defenses alone.
Frequently asked questions
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What security mindset did Ben Zhou recommend for exchanges?
Zhou said exchanges should assume an attack will happen, then focus on limiting damage and ensuring the company can survive.
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How does Bybit's hardware wallet system control access?
The system requires staff to be physically present to unlock its HSM.
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Why do many projects still rely on third-party wallet providers?
Zhou said building banking-grade hardware wallet systems is costly and time-consuming.
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What threat beyond technical vulnerabilities did Zhou highlight?
He emphasized social engineering as a risk exchanges should address alongside technical security.
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What layered security approach did Zhou advocate?
He urged companies to build multiple layers of protection on the assumption that an attack will occur.
Benjamin Cowen
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