CZ's Withdrawal Pause Advice Sparks Debate on Security vs. User Convenience

Binance founder CZ has shared his thoughts on how exchanges should handle customer withdrawals during and after a security breach. In an interview, he recalled advising Bybit to pause withdrawals following their hack in September 2026.

CZ's reasoning was that halting withdrawals would prevent further abnormal fund outflows while the exchange investigated and contained the damage. However, he acknowledged that this approach could disrupt trading continuity and inconvenience users.

In the end, Bybit chose not to pause withdrawals, and CZ stated that no further issues occurred afterward. He emphasized that there is no absolute right or wrong approach in such situations, but rather a need for proper risk assessment in the moment.