"Banks Are More Vulnerable"…Warning Issued After North Korea's Record-Breaking Heist

▲ Binance

Changpeng Zhao, the founder of Binance who suffered cryptocurrency theft damage, predicted that cyberattacks targeting cryptocurrency exchanges and banks will increase due to the advancement of artificial intelligence technology.

In an interview with cryptocurrency-focused media outlet CoinDesk on November 3 (local time), Zhao stated, "There is no other way for the industry to stop AI hacking than to utilize AI itself."

Having stepped down from front-line management at Binance, he pointed out that hackers are acquiring AI capabilities faster than financial institutions can adopt AI to protect their systems.

In particular, noting that AI-driven cyber threats are not limited to the cryptocurrency industry, he claimed, "If crypto exchanges are getting hacked, I think banks are in an even more vulnerable position."

He anticipated that "we will see significantly more hacking incidents in the short term," but expected that over time, financial security will ultimately be strengthened as defense systems are also reinforced using AI.

He also shared his stance on customer fund withdrawal trends following the recent incident.

He explained that the 3.6 billion dollars initially withdrawn after withdrawal services resumed accounted for only about 2% of Binance's total asset holdings.

He added that although he initially expected a massive bank run reaching 10% to 30% of total assets, the actual scale was much smaller.

However, contrary to Zhao's warnings on November 3 (local time) regarding the dangers of AI hacking, major blockchain analytics firms released reports stating that North Korean hackers utilized automated algorithms rather than relying on AI agents.

Previously, the Federal Bureau of Investigation identified North Korea's elite hacking group TraderTraitor as the mastermind behind this Binance hacking incident.

Zhao, who founded Binance in 2017, was indicted in 2023 on charges including violations of anti-money laundering regulations and securities laws. After pleading guilty, he paid a fine of 4.3 billion dollars and stepped down as CEO of Binance.

Following Donald Trump's return to the presidency, Zhao and Binance engaged in lobbying for a pardon, eventually receiving a pardon in October of last year.

When asked about the reason for the pardon in a media interview at the time, President Trump caused controversy by responding, "I don't know who he is."

Since then, Zhao has maintained a close relationship with President Trump's circle, attending a banquet at the Mar-a-Lago resort in Florida hosted by World Liberty Financial, a cryptocurrency venture associated with the Trump family.

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