People Should Be Cautious Before Using Decentralized Exchanges, Says Binance CEO
Binance CEO CZ has issued a warning for cryptocurrency investors about using decentralized exchanges. He was alluding to the exploit that affected Balancer, a DEX platform based on Ethereum blockchain.
On this account, he advised the investors to exercise caution and take necessary security measures when using a decentralized digital currency trading platform. The affected forum Balancer shared on X that the front end code of the platform was affected.
The platform further added that it was currently investigating the event. At the same time, the platform has also issued a warning for the investors to refrain from interacting with their UI until further notice.
CZ shared the news on X and advised the investors to proceed with caution when dealing with decentralized exchanges. At the same time, he also iterated the message stay SAFU. SAFU is a popular acronym in crypto sector that means Secure Asset Fund for Users.
Security Issues Associated with Decentralized Exchanges
The comments from Binance CEO sparked comments among the crypto community members. Some members on X agreed with the assertion while others have different opinion. A big portion of investors retained that they feel safe when using Binance exchange for trading.
Meanwhile, there were some voices that echoed important concerns such as perpetual danger of using decentralized trading platforms. There were also some internet users who shared the edited pictures of Zhoa that depicted him as the savior of crypto investors.
Investors seem to opine that CZ provides them protection against fake news, hacks, and FUD. However, the current stance of the CEO seems to have changed recently.
In 2022, Binance blog showed a resounding support for decentralized exchanges. He has stand that Binance is taking important steps to grant its users access to all the available tools.
At the same time, he revealed that Binance exchange has participated in development of CEX and DeFi services with heavy investments. He retained that security and freedom for investors are the scope of the crypto exchange platform.
Hack Attack on Balancer
Yahoo media covered the cyberattack that affected decentralized trading platform namely Balancer.
It is important to note that the platform seems to be targeted by the hackers facing the second attack for the second time within 30 day span. The first attack in this series led to the loss of $1 million in virtual currencies.
Following the second attack, the total losses of the DEX have reached $238K in stolen funds. Cybersecurity firm PeckShield is investigating the incident. On this account, the firm has issued a report claiming to estimate the total funds lost in stolen amount taken by the hackers.
Additionally, ZachXBT on-chain sleuth has retraced and shared the wallet account where the stolen funds from Balancer have been redirected.
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