Binance founder warns of AI-driven cyberattacks following major heist

Changpeng “CZ” Zhao, founder of Binance, has warned that artificial intelligence could fuel a new wave of cyberattacks against cryptocurrency exchanges and banks. This warning follows a massive security breach on October 29, where hackers reportedly drained approximately $6.34 billion from Binance in about 20 minutes. Binance stated it used its own funds to cover the losses, ensuring users did not bear the financial impact.

Zhao noted that hackers are gaining access to AI tools faster than financial institutions can implement defenses. He emphasized that the industry must utilize AI to prevent AI-driven hacks and called for the establishment of common security standards or an industry alliance. He also suggested that traditional banks might be even more vulnerable to such attacks than crypto exchanges.

In a similar assessment, Swan Bitcoin founder Cory Klippsten stated that large language models present a more immediate threat to Bitcoin security than quantum computing. Klippsten argued that attackers are using AI to probe security weaknesses through simple prompts, whereas the threat from quantum computing remains at least a decade away.