Binance co-founder Changpeng Zhao has warned that artificial intelligence is making it easier for hackers to identify software vulnerabilities and launch cyberattacks, urging banks and other financial institutions to strengthen their cybersecurity defences.
Zhao, popularly known as CZ, said AI-powered tools were giving cybercriminals the ability to analyse computer code and detect security weaknesses that human security teams might previously have struggled to identify.
He made the remarks during an interview with Yahoo Finance Executive Editor Brian Sozzi, following a major security breach at Binance that the cryptocurrency exchange estimates resulted in losses of approximately $6.3bn.
According to Zhao, the growing capabilities of AI-powered hacking tools are creating an uneven contest between attackers and organisations trying to protect their systems, as defensive technologies have not advanced at the same pace.
“There’s no 100% security,” he said, noting that cryptocurrency platforms, digital wallets, banks and other financial institutions were all exposed to the possibility of cyberattacks.
“AI is just making hacking so much easier now, and the AI so far has not made defence a lot easier,” he added.
Zhao said AI could analyse software code and identify bugs more extensively than human security teams, making it increasingly difficult for financial institutions to rely solely on traditional cybersecurity measures.
He urged the global financial system to accelerate the adoption of AI-powered security tools to identify vulnerabilities, monitor suspicious activities and respond to emerging threats.
“The whole global financial system needs to catch up on the AI defence, and we have to use AI as well,” he said.
His warning comes as financial institutions face increasing pressure to protect digital infrastructure and customer assets from attacks targeting weaknesses in software, payment systems and online platforms.
See also: North Korea Fires Back After FBI Links It to $6.3bn Binance Heist
The comments also follow a major security incident at Binance involving unauthorised withdrawals from the exchange’s hot wallets, which hold cryptocurrency for transactions and customer withdrawals.
In an October 30 statement, Binance said its preliminary investigation pointed to a possible compromise of a DevOps engineer’s laptop. The breach may have allowed an attacker to access a service container and execute unauthorised withdrawal transactions.
The company said further vulnerabilities were identified as the investigation progressed, although it found no evidence that wallet private keys had been compromised.
Binance has pledged to cover the affected assets through its Secure Asset Fund for Users (SAFU) and corporate reserves, setting aside more than $6.34bn to address the losses.
The exchange is also working with law enforcement agencies and blockchain partners to trace and freeze the stolen funds. It said approximately $3bn had already been frozen on-chain.
During the interview, Zhao said withdrawals had resumed and the platform was operating normally. He reiterated that customers would not bear the financial losses arising from the incident.
Although Zhao is no longer Binance’s chief executive, he said he had been monitoring the situation and expressed confidence in the company’s response to the breach.
The incident has renewed concerns about the security of centralised cryptocurrency exchanges, which hold substantial customer assets and depend on digital systems to process transactions.
Zhao’s warning, however, extends beyond cryptocurrency companies, highlighting the need for banks, payment providers and other financial institutions to use AI to strengthen their defences as cybercriminals adopt the technology to improve their attacks.
The Binance breach also underscores the financial and reputational damage that security failures can cause, even when a company has sufficient reserves to reimburse affected customers.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
