Binance Founder Commends Bybit CEO Ben Zhou for His Transparent Handling of the $1.4B Hack

Reflecting on the recent $1.4 billion Bybit heist, Binance founder Zhangpeng Zhao stressed the significance of security.

Binance founder CZ has commended Bybit CEO Ben Zhou for his transparent handling of the recent $1.4 billion hack, which saw the notorious Lazarus Group steal a massive amount of ETH from the exchange.

In his recent X post, CZ reflected on the increasing crypto thefts, including the Bybit hack, and drew parallels to other well-known incidents, such as the FTX and WazirX scams. Highlighting Zhou’s approach in the wake of the incident, CZ noted his appreciation for his openness and direct communication with the community.

"I am sure Ben made the best decision based on the info he had…Ben did a good job maintaining transparent communication and calmness in dealing with a challenging situation. That shows a sharp contrast to other less transparent CEOs, like WazirX, FTX, etc," wrote CZ in his X post.

suggest to halt all withdrawals for a bit as a standard security precaution. We have full support for Bybit if they need any assistance.”

Following CZ’s suggestion that Binance-integrated exchanges, like Bybit, might consider halting withdrawals as a security measure, many raised questions about the rationale behind this approach.

In his recent X post, CZ clarified his perspective, highlighting the importance of prioritizing security, based on his own experiences. While acknowledging that such a move might trigger panic, he ultimately believes that safety should come first.

"After the 2019 $40 million Binance hack, we halted withdrawals for a week. During that week, we saw an interesting phenomenon. Everyone expected massive withdrawals, but instead, we saw a net deposit. People were surprised we recovered so quickly, and many chose to keep their funds on Binance," stated CZ in his X post.

Moreover, CZ shared his guiding principle in such situations, which is to "lean on the safer side." According to him, companies should pause operations after a security incident, thoroughly investigate the breach, and ensure the safety of all systems before resuming operations.

Ben Zhou Agrees with CZ: Here’s What He Said

In response to CZ’s message, Ben Zhou expressed his complete agreement with the Binance founder's suggestions. He added that the team would have halted withdrawals if the breach had involved a penetration of Binance’s internal systems, including the withdrawal system or a hot wallet.

However, regarding yesterday’s Bybit hack, the team didn’t need to intervene with the internal system as the hackers breached the ETH cold wallet. Zhou clarified that the platform's ability to maintain normal operations, including withdrawals and system functions, was due to the isolated nature of the breach.

I do agree with CZ that if this hack was conducted through penetrating our internal systems such as any part of the withdraw system or one of our hot wallet was breached, we would've halted all withdraws until we find the root cause of the problem. In the case of yesterday, it… https://t.co/fxmGLbgOP7

— Ben Zhou (@benbybit) February 22, 2025

Further, Zhou also extended his appreciation to Binance and CZ for their timely and invaluable support throughout the incident. He stated,

"Binance and CZ was among many of the partners and industry leaders that offered to help us during last night fiasco. We are extremely grateful and simply overwhelmed with all the support that we got. This was a truly tragic event for Bybit but the industry showed strength united together. I have faith that it’s only up from now."

The $1.4B Bybit Hack: What You Should Know

Notably, the Lazarus Group stole $1.4 billion in ETH from Bybit via a major crypto theft. To boost the platform’s stability, many exchanges, including Binance, have extended their support. Millions of assets were sent to the exchange from multiple wallets.

As recently unveiled by Zhou, much of the company's assets have remained untouched by the hack. Bybit’s cold wallet holds nearly 3 billion USDTs. In addition, the platform reserve includes $1.2 billion in ETH, $6.71 billion in BTC, $2.45 billion in MNT, and $652 million in USDC.

In a recent development, the Binance founder debunked rumors that Binance transferred millions of ETH to Bybit. Instead, he attributed these transactions to users or whales.