Binance Co-Founder Calls for Withdrawal Pause After Bybit Hack

Changpeng Zhao, the co-founder of Binance, recently explained why he suggested exchanges consider pausing withdrawals after the Bybit hack. According to Zhao, the pause is a short-term security containment measure, not a sign of deeper financial trouble.

Zhao made this recommendation on the When Shift Happens podcast, where he described the pause as a cautious step designed to stop abnormal fund outflows while the scope and nature of the breach remained unclear. He argued that security risks should take priority over trading continuity, even when users face inconvenience.

The logic behind this approach centers on the window of uncertainty that follows a confirmed exploit. Until an exchange can verify which systems were compromised, which wallets may be affected, and whether the attacker still has access to infrastructure, processing outflows could inadvertently accelerate losses. A brief, deliberate pause creates time for incident response teams to assess the damage before funds move further.