Binance Founder Changpeng Zhao Rejects Guarantee After Breach Involving $6.34B in Assets

Binance founder Changpeng Zhao said the exchange cannot promise it will never suffer another attack, addressing customer trust after an Oct. 30 incident involving about $6.34 billion in digital assets.

In a Nov. 3 investigation update, Binance estimated that the incident involved about $6.34 billion in assets and said about $2.85 billion had been frozen or intercepted. The company said it had set aside enough funds to cover user losses and was replenishing affected assets. The $6.34 billion estimate describes assets involved, not losses. Binance had earlier detailed its funding plan for the incident.

At the Oxford Union appearance, Zhao said the attackers may have spent five or six months preparing. He said they used fake recruiting efforts and social engineering to approach Binance personnel before using artificial intelligence to study the exchange's systems. Zhao also acknowledged that some basic security procedures were not enforced strictly enough.

Zhao declined to guarantee another attack could never happen, saying complex information systems cannot be made immune to every threat. He said Binance's security and operational weaknesses needed to be addressed rather than dismissed as the result of an unusually advanced attack.

Zhao pointed to Binance's prompt communication about the incident and its commitment to cover user losses as parts of the exchange's response. The Nov. 3 update said Binance had reserved enough funds and was replenishing affected assets.

The discussion also addressed who should be responsible for safeguarding customers. Zhao said user protection should be a platform rule that remains in place whether or not he is in charge. He no longer serves as Binance's CEO.

The interview included 19 audience questions on subjects including the breach, crypto payments, artificial intelligence and enforcement. Zhao cited limited access to banking, cross-border payment friction and high inflation as problems crypto may help address. He also recognized ongoing challenges involving fees, compliance, custody and consumer protection.

Zhao described artificial intelligence as having uses for both attackers and payment systems. He said AI agents transacting with one another could create demand for frequent, small payments, presenting a potential use for low-cost digital payment infrastructure. He also said public blockchain records can help outside analysts spot unusual activity, sometimes before a platform does.