Changpeng Zhao, co-founder of Binance, explained in a September 25, 2026 interview that he publicly urged a pause on withdrawals following the Bybit hack. Zhao described this recommendation as a cautious measure designed to stop abnormal fund outflows, arguing that security risks should take precedence over trading continuity during such incidents. He acknowledged that suspending services can disrupt markets and inconvenience users but maintained that risk assessment is the critical factor in these situations.
Bybit ultimately did not implement a withdrawal pause, and no further issues occurred afterward. Zhao noted that this outcome demonstrates there is no absolute right or wrong in crisis management, emphasizing the importance of context-specific risk evaluation. He referenced Binance’s response to its own 2019 hack and claimed that Binance’s market share remained stable despite criticism following the 2025 market crash. The interview also covered his views on FTX’s collapse, attributing it to liquidity failures rather than his 2022 tweet about selling FTT holdings.
Zhao’s commentary highlights the tension between operational resilience and user accessibility in crypto exchange security protocols. By advocating for temporary service suspensions during breaches, he underscores a conservative approach to capital preservation that contrasts with the industry’s emphasis on uninterrupted liquidity. This stance reflects a broader institutional concern where preventing contagion through halted withdrawals may be viewed as necessary to maintain solvency confidence, even if it temporarily restricts user access to funds.
The fact that Bybit avoided negative consequences without pausing withdrawals suggests that effective incident response may rely more on internal containment measures than public-facing restrictions. For regulators and exchanges, this indicates that rigid mandates for withdrawal pauses might not always yield superior outcomes compared to tailored risk assessments. Future scrutiny will likely focus on how exchanges balance transparency with security controls, particularly when distinguishing between genuine threats and false positives in high-stakes environments.
