CZ: My Guiding Principle is Always to Lean on The Safer Side

On February 22, Binance founder Changpeng "CZ" Zhao addressed concerns regarding his recommendation for ByBit to suspend withdrawals following a security breach. CZ highlighted a pattern in recent crypto exchange hacks, including those affecting ByBit, Phemex, and WazirX.According to CZ, hackers are now able to manipulate multi-signature cold storage systems, forging transaction signatures while displaying legitimate transactions on user interfaces. In ByBit's case, attackers managed to deceive users by making the system show an authentic transaction while executing a different, unauthorized one.Why CZ Recommended Immediate Withdrawal SuspensionsCZ defended his earlier call for ByBit to halt withdrawals, stating that his recommendation was based on personal experience and a cautious approach to security. "Some questioned my suggestion to suspend all withdrawals immediately. My principle is always to be on the safer side," he wrote.He explained that in the aftermath of a security breach, exchanges must fully assess the attack vector, identify affected systems, and conduct extensive security checks before resuming operations. While suspending withdrawals may cause temporary panic, CZ emphasized that security should take priority over immediate concerns.Lessons from Binance's 2019 Security BreachDrawing from Binance’s own security breach in 2019, where hackers stole $40 million, CZ recalled that the platform suspended withdrawals for a week. Contrary to fears of mass withdrawals upon reopening, Binance actually saw higher deposits than withdrawals after security was restored."I'm not saying this approach is always better, as each situation is unique. However, my purpose in tweeting was to share practical insights and support exchanges facing crises," CZ noted.