CZ Urges Crypto Firms to Expand Security Spending and AI Tools

Binance founder CZ urged crypto firms to increase security spending and expand the use of artificial intelligence tools after an attack on the exchange, putting industry defenses at the center of his recommendations.

He also called on retail users to strengthen how they protect their holdings. CZ warned that self-custody carries risks: users can lose assets if their seed phrases are lost or damaged.

Some users withdrew from Binance because of institutional policies or security concerns, CZ said. Most of those funds went to self-custody wallets rather than other centralized exchanges.

CZ said fund flows could continue to fluctuate for weeks or months. Binance recorded hourly net inflows within 24 hours of the attack.