CZ Calls for Crypto Security Alliance After Binance Hack

Changpeng “CZ” Zhao is urging crypto companies to form a security alliance after the Oct. 29 hack of Binance, warning that AI is accelerating cyberattacks. In his first public interview since the incident, Binance’s cofounder and former CEO called for stronger AI-based defenses, more security staff, partnerships with specialist providers, cross-audits and faster coordination to freeze stolen funds.

Binance said hackers used a fake job interview to compromise an employee’s computer before leveraging an internal AI tool in the attack. Zhao also cited a separate AI-assisted breach at Chainalysis and a $46 million security incident at Brazilian exchange Mercado Bitcoin. Binance said it detected and prevented 57 suspected North Korea-linked cyber threats in 2026.

Why it matters

Zhao argued that the risk reaches beyond individual exchanges because crypto connects with stablecoins, tokenized stocks, real-world assets and traditional finance. He described security incidents as preventable with sustained attention, but warned that organizations can become complacent. His proposed alliance would let firms share lessons and best practices, conduct cross-audits and coordinate responses.

Zhao said the Binance team worked to contain the attack and protect users while he focused on communicating with the community. He credited the response, the company’s financial capacity and user trust for relatively calm market conditions and subsequent net inflows. He said he had not discussed the incident with President Donald Trump or other U.S. officials; Trump has said the U.S. was looking into it.

Market impact

The incident did not, Zhao said, trigger a lasting loss of confidence in Binance, but it puts operational security and incident response in focus for the wider crypto sector. A faster, coordinated approach to sharing threat intelligence and freezing funds could limit damage when attacks cross company boundaries.

Zhao also sees AI as both a threat and a defensive tool, capable of helping identify software vulnerabilities. He argued that blockchain could support faster transactions facilitated by AI.