Artificial intelligence is making hacking easier without delivering comparable improvements in defense, leaving financial institutions facing a growing threat after the Binance breach, the cryptocurrency exchange’s co-founder CZ said.
Binance restored withdrawals and covered customer losses after the attack, he said in a Yahoo Finance interview at Invest 2026 published Nov. 13. He said he no longer manages the company but remains a shareholder.
CZ said he learned about the hack around midnight on Thursday in the United Arab Emirates and initially focused on understanding what had happened. The company worked to contain the attack and inform customers while he communicated with the cryptocurrency community.
“There’s no 100% security,” he said. He had not expected an attack of that size, although he said the platform’s growth meant even a small share of its holdings represented a large sum. He gave no loss amount.
He said AI had made it much easier to examine computer code and find flaws, while defensive capabilities had failed to keep pace. Financial institutions needed to use the same technology to improve their protection.
“All they have to do is find one crack,” he said of attackers. Defenders, by comparison, needed to identify and close every weakness in their systems. He said hackers combined AI with established methods, including manipulating people into giving them access.
CZ said he believed North Korean hackers were responsible, citing blockchain tracing specialists and the FBI. He acknowledged that he was not a security expert and could not independently identify which cryptocurrency addresses belonged to North Korea.
He said exchanges could prevent such attacks by spending more time and resources on security, although new weaknesses could emerge as technology changed. He called for wider use of AI tools and reviews of security procedures developed before the technology became widely available.
CZ said Binance held reserves covering all customer funds and therefore did not fear a rush of withdrawals. Internal investigators, outside specialists and law enforcement were examining the attack. He said he helped introduce resources but did not participate in implementing the response.
“We did not sell any SpaceX shares,” he said, adding that Binance had no need to sell them to meet withdrawals. He said he mentioned the holdings during an online exchange with Elon Musk to demonstrate that Binance owned assets outside cryptocurrency.
He said the reference was not a threat to sell the shares and acknowledged that his wording had allowed misunderstanding. Musk had posted an emoji in a thread comparing Binance with FTX, and CZ said he responded forcefully because he feared more customer panic.
CZ said Binance customers could not withdraw funds for two days before service resumed. Rebuilding confidence would require work across the industry, he said, adding that discussions included potentially forming an industry security alliance. He gave no timetable or details for such a group.
