Changpeng Zhao, co-founder of Binance, said he publicly recommended pausing withdrawals after the Bybit hack, describing the move as a precautionary step to prevent further abnormal outflows of funds. Zhao made the remarks in an interview published on September 25, 2026, arguing that security risks should take priority over trading continuity, even if users face inconvenience. The breach he referenced saw roughly $1.5 billion in digital assets stolen from Bybit in February 2025 — the largest single exchange hack on record, attributed by investigators to North Korea's Lazarus Group — making exchange crisis response an industry-wide concern. Bybit ultimately kept withdrawals open and encountered no further issues — an outcome cited as evidence that no absolute right or wrong exists in such situations and that sound risk assessment is what matters. The conversation also covered FTX, his 2025 pardon, and his plans for the future.

Why Zhao Favored a Pause After the Bybit Breach

Zhao discussed the episode on the "When Shift Happens" podcast hosted by KevinWSHPod. He said he suggested suspending withdrawals after Bybit was hacked because he believed the step would help contain abnormal outflows of funds from the exchange.

At the same time, Zhao acknowledged the trade-offs involved. Suspending services can disrupt trading continuity and inconvenience users who need access to their funds, he said. In his view, however, security risks should take precedence in such circumstances. The pause-or-stay-open question is a recurring dilemma for centralized exchanges, which must weigh containment against the possibility that a freeze itself alarms customers.

Bybit did not adopt the recommendation and did not pause withdrawals. Notably, no further problems occurred afterward. Zhao said the divergent outcomes show that no absolute right or wrong exists in these situations, and that the key lies in risk assessment.

Drawing on his own experience, he cited Binance's response to its 2019 hack when discussing how exchanges handle security breaches. In that May 2019 incident, Binance halted deposits and withdrawals for about a week after attackers drained roughly 7,000 bitcoin, later covering affected users in full through its Secure Asset Fund for Users (SAFU). He also claimed that Binance's market share held up despite criticism in the aftermath of the 2025 market crash.

Zhao on FTX, Binance's Growth, and His Pardon

The interview also addressed claims that a 2022 tweet from Zhao, announcing the sale of Binance's FTT holdings, killed FTX. Zhao rejected that characterization with a pointed remark: "If one of your competitors can make a tweet to kill your company, then you don't have a company."

He described the post as a transparent disclosure and said he had not expected a major market reaction. In his account, FTX failed because it lacked liquidity after misusing customer funds. He pointed to prior reporting about the company's finances and a response from Alameda's CEO, arguing that the tweet was not the underlying cause of the exchange's failure. FTX filed for bankruptcy in November 2022, and the collapse pushed exchanges across the industry to publish proof-of-reserves disclosures.

Zhao also looked back on Binance's launch in 2017, when he redirected an existing exchange-software team toward building a crypto-to-crypto exchange. He credited the company's rapid early execution to a hardworking, humble, and closely aligned team, while acknowledging that strong deference to leadership can make candid feedback difficult.

He also explained the "four" meme, describing it as shorthand for focusing on education, compliance, and products while ignoring misleading negative narratives.

On his 2025 pardon, Zhao said he applied through a lawyer and never met or spoke with President Trump. He maintained that his conviction concerned inadequate anti-money-laundering controls and called his punishment unusually severe, while acknowledging that his view on the matter is biased.

Looking ahead, Zhao said he plans to advise on crypto policy, invest in Web3, and offer free education. How future breaches get handled — and whether platforms favor Zhao's containment-first instinct or Bybit's decision to stay open — remains one of the open questions his remarks leave for the industry.