Zhao said “there’s no 100% security,” and that the financial system needs to start using AI for its own defenses.
- Binance’s CZ said AI tools can find flaws in code far faster than people can.
- He warned that every crypto platform, wallet service, and bank was at risk.
- He said withdrawals have been restored and “all user funds are covered,” with Binance absorbing the losses.
Binance coin’s (BNB) price edged lower on Tuesday as the exchange’s co-founder, Changpeng Zhao (CZ), warned that artificial intelligence (AI) was making hacks easier to carry out, days after the crypto exchange suffered a multibillion-dollar breach.
In an interview with Yahoo Finance, Zhao said AI “has not made defense a lot easier.” Zhao said AI tools can now scan code for flaws and bugs far more thoroughly than humans could before. That, he said, puts every platform at risk.
“This is every crypto platform, every wallet service, every bank, every financial institution that you use,” Zhao said. “Especially now with AI improving so quickly, I think we’re going to see a lot more of this.”
BNB’s price was down by 0.4% during the past 24 hours. On Stocktwits, the retail sentiment around BNB remained in the ‘bullish’ zone, while chatter around it stayed at ‘high’ levels over the past day.
Industry Must Catch Up
Zhao said the global financial system needed to strengthen its own defenses using AI. “We have to use AI as well,” he said, adding that the industry is exploring ways to do so together.
He also said no platform can be fully protected. “There’s no 100% security,” Zhao said, though he admitted he did not expect a hack “this big of magnitude.” The FBI said last week that North Korea was responsible for the theft of more than $6 billion from Binance.
Ever since the hack, Bitcoin’s price has remained in the $76,000 range, dropping from its weekly high of $81,000. On Stocktwits, retail sentiment around BTC dropped to the ‘extremely bearish’ zone from the ‘bearish’ zone over the past week. However, chatter around the apex cryptocurrency increased by more than 41% in the past seven days.
Users Covered, Says Zhao
Zhao said withdrawals on Binance have been restored and the platform was working normally again. “All user funds are covered,” he said, adding that users “did not suffer any loss” because the platform absorbed it.
Zhao noted that he no longer runs the company, that he learned of the hack around 3:00 PM EST, and that he focused on keeping users calm through his social media account. As a shareholder, he said he quickly made clear that users would be covered.
Zhao stepped down as Binance’s CEO in November 2023 as part of a settlement with U.S. authorities. Zhao pleaded guilty to failing to maintain an effective anti-money laundering (AML) program at the exchange, and was sentenced to four months in prison.
U.S. President Donald Trump had pardoned him in October 2025.
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