Binance founder Changpeng Zhao warned of a potential rise in AI-powered cyberattacks following the October 29, 2026, attack on the crypto exchange, which caused an estimated $6.36 billion in damage. Zhao said the threat matters because attackers gain access to new technologies faster than financial institutions can deploy protective measures.

In an interview with CoinDesk, Zhao urged the crypto industry to adopt AI tools to protect its infrastructure.

“The industry must use AI to prevent AI-driven attacks. There is no other way,” Zhao stressed.

He said attackers retain an advantage because they need to find only one vulnerability, while defenders must identify and eliminate every possible weakness in a system.

Zhao said the threat extends beyond crypto platforms to traditional financial institutions and argued that banks may be even more vulnerable to such attacks.

Call for common security standards

Zhao called on industry participants to develop unified cybersecurity standards or establish a dedicated alliance. Discussions are underway, but participants have not reached concrete agreements.

He did not provide evidence that artificial intelligence was used in the recent Binance hack. According to findings from Elliptic, automated scripts were used to move the stolen assets, but analysts found no signs that AI agents made decisions independently.

Binance hack and recovery efforts

The October 29 attack was the largest hack in the history of the crypto market, with damage estimated at about $6.36 billion. The U.S. Federal Bureau of Investigation linked the incident to the North Korean group TraderTraitor.

Blockaid specialists said the attackers used EIP-7702 to siphon about $2.5 billion from one of Binance’s hot wallets.

Following the incident, Binance set aside more than $6.34 billion of its own funds to cover losses. Analysts’ latest estimates indicated that about $2.85 billion of the stolen assets had been frozen or seized.

Zhao expects cyberattacks to continue increasing in the short term. Over time, however, he believes advances in AI will make security systems more effective and reduce financial losses.

Source: Incrypted