Balancer Attack Spurs Binance CEO’s Caution on DEX Usage

Balancer Attack Spurs Binance CEO's Caution on DEX Usage

Balancer Attack Spurs Binance CEO’s Caution on DEX Usage

In light of the recent assault on Balancer, an Ethereum-based decentralized finance protocol, Changpeng Zhao, CEO of Binance, advised people to use decentralized exchanges (DEX) cautiously.

Balancer announced on X (previously Twitter) that its front end is under attack and being investigated. In addition, until further notice, users should not interact with the user interface.

Zhao added to this tweet a caution against using decentralized exchanges or cryptocurrency in general. He said, “Remain calm.”

Most of the crypto community on X agreed with Zhao’s statement and felt secure using Binance.

A user stated, “DEXs are always risky to use. Only Binance is superior.” Another user responded with an image depicting Zhao as the protector of cryptocurrency holders from hacks, false news, and FUD (fear, uncertainty, and doubt).

In contrast, Zhao stated on a Binance blog in October 2022 that they are staunch proponents of decentralization.

“At Binance, we believe in taking incremental measures and offering users options for all available tools,” he said.

“Binance invests significantly in the development of CEX and DeFi solutions, and we will continue to advocate for a future in which freedom and security coexist.”

Yahoo reports this is the second Balancer attack in less than a month.

The previous breach 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 affiliated with a blockchain security and data analytics firm. ZachXBT, a blockchain-based detective, also divulged the address to which the stolen funds are being sent.

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