Exercise Caution When Using Decentralized Exchanges: Binance CEO

In light of the recent attack on Balancer, an Ethereum-based decentralized finance protocol, Binance’s CEO Changpeng Zhao shared that people should exercise caution when using decentralized exchanges (DEX).

Exercise caution when using DEX, or crypto in general. Stay #SAFU. 🙏 https://t.co/Uf1l90w1Dz

— CZ 🔶 Binance (@cz_binance) September 20, 2023

Balancer shared on X (formerly Twitter) that its front end is under attack and is currently under investigation. Moreover, they added that users shouldn’t interact with the user interface until further notice.

Zhao added to this tweet and warned people when using decentralized exchanges or crypto in general. He added, “Stay SAFU.”

Not all of the crypto community on X agreed with Zhao’s statement, but the majority expressed agreement and felt safe while using Binance. One user said, “DEXs are always dangerous to use. Only best one is Binance.” Another user replied and shared an image that depicts Zhao as the crypto holders’ protector from all the hacks, fake news, and FUD (fear, uncertainty, and doubt).

On the contrary, in October 2022, Zhao shared in a Binance blog that they are big proponents of decentralization. He said, “At Binance, we believe in taking incremental steps as well as providing users with options for all available tools.” He added, “Binance invests heavily in the development of both CEX and DeFi solutions, and we will continue to be advocates for a future where freedom and security can go hand in hand.”

#PeckShieldAlert @Balancer has reported that its frontend under an attack, ~$238k worth of cryptos were stolen https://t.co/aAaj0Xqery pic.twitter.com/YDIjfnNYM4

— PeckShieldAlert (@PeckShieldAlert) September 20, 2023

This is the second Balancer attack in less than a month, according to Yahoo. The previous hack led to approximately $1 million in losses, while in this one, at least $238,000 has been stolen so far, according to PeckShield. PeckShield is part of a blockchain security and data analytics company. ZachXBT, an on-chain detective, also shared the address that the stolen funds are being directed to.

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