CZ Says Binance Hack Signals Serious Security Failures, Urges Transparency

Binance founder and former CEO Changpeng Zhao (CZ) said the Oct. 29 breach exposed serious security failures at the exchange and called for accountability, replying on X to Lightspark co-founder and CEO David Marcus, who thanked Binance for publishing its initial findings and called them "incredibly helpful to the entire industry.""A hack of this scale means serious security failures occurred," CZ wrote. "No platform is unhackable, but that cannot be an excuse. Every incident exposes weaknesses that should have been prevented."He acknowledged that some of the disclosed details are uncomfortable, and that public accounts tend to flatten what appears to have been a drawn-out campaign spanning months or years against hundreds of employees and systems, with a handful ultimately compromised. "Sharing those details, however uncomfortable, helps the wider industry learn," he said.CZ, who is no longer Binance's chief executive, framed his criticism explicitly as a shareholder. "As a shareholder, I expect Binance to be transparent about what went wrong, take responsibility, learn from all criticism, and make meaningful improvements."