Binance to Manage Internal AI Tools Under Critical-Infrastructure Standards

Binance plans to manage its internal AI tools and development environments under critical-infrastructure standards as it reviews an Oct. 29 security incident, Chief Security Officer Jimmy Su said.

The exchange is working with AI and security companies to establish a research fund focused on security threats involving blockchain and AI, Su said.

Su said attackers used transaction authorizations recorded on the blockchain, outside Binance’s withdrawal system. Pausing withdrawals therefore would not stop the outflow; Binance needed to submit a separate on-chain transaction to cancel the authorizations.

Binance’s hot wallets use multi-party computation, Su said, leaving no single private key able to revoke the permissions immediately. The team developed a revocation process during the incident, and it took several hours to bring the situation under control.

Su also said the attack used zero-day malware that third-party endpoint protection software did not detect.