- Binance CEO Changpeng Zhao warns about using decentralized exchanges following Balancer assault.
- Balancer experiences second attack within a month, losing minimum $238,000.
- Zhao reaffirms Binance’s commitment to decentralization and user security in blog post.
Following the recent assault on Balancer, a decentralized finance protocol based on Ethereum, Changpeng Zhao, the CEO of Binance, advised that individuals should be careful when utilizing decentralized exchanges (DEX).
The Balancer announced on X (previously known as Twitter) that their front end is experiencing an attack and is being investigated. They further advised users to only interact with the user interface once they provide additional updates.
Zhao further commented on his tweet, cautioning individuals about using decentralized exchanges or cryptocurrencies. He emphasized, “Remain SAFU.”
While Zhao’s statement did not receive unanimous support from the crypto community on X, the majority concurred and expressed a sense of security when utilizing Binance. One participant commented, “DEXs are invariably risky to use. Binance is the only reliable one.” Another participant responded by posting a graphic portraying Zhao as a guardian for crypto holders against hacks, misinformation, and FUD (fear, uncertainty, and doubt).
Contrarily, Zhao communicated in a Binance blog post in October 2022 that they strongly support decentralization. He stated, “At Binance, our philosophy is to progress gradually while offering users access to all possible tools.” He noted, “Binance is committed to investing significantly in the growth of both CEX and DeFi solutions, and we will persist in championing a future where liberty and security can coexist.”
Yahoo reports that this is the second attack on Balancer within a month. The prior breach resulted in an estimated loss of around $1 million. In the current attack, a minimum of $238,000 has reportedly been stolen, per PeckShield. PeckShield is a firm specializing in blockchain security and data analytics. Additionally, ZachXBT, a blockchain investigator, has disclosed the address to which the pilfered funds are transferred.
