CZ Calls Out Web 2.0 Vulnerabilities Against Crypto Standards
On-chain analyst Lookonchain revealed the mechanics of the scam. The hacker had created two wallets several hours before the hack, evidence of methodical preparation. The attacker invested 19,479 USDT to purchase 21.16 million MUBARA, building a position at very low prices. Once the WeChat account was compromised, the fraudulent post triggered a surge in the token, allowing the hacker to profit from market euphoria.
According to on-chain data, he sold 11.95 million tokens for 43,520 USDT, while retaining 9.21 million MUBARA valued at $31,000. The total gain reached approximately $55,000, obtained within a few hours. This scheme perfectly illustrates a classic market manipulation: discreet accumulation, identity theft as a catalyst, then selling during the peak of retail investor enthusiasm.
Changpeng Zhao responded by denouncing the vulnerabilities of Web 2.0 platforms, which rely on weak authentication mechanisms, particularly phone numbers. In contrast, Web 3.0 systems, based on decentralized models, self-sovereign identities, and multi-signature protocols, offer superior security, although their adoption remains limited, even within the crypto industry.
The irony is notable: An executive of the largest crypto exchange platform becomes a victim of the same centralized systems that Web 3.0 aims to replace, revealing the gap between decentralized vision and the tools still used daily.
Get free trades from a pro on our private group!
Binance Secures Strategic License in Abu Dhabi
In stark contrast to the hack, Binance announced it has obtained a full ADGM license, becoming the first digital asset exchange to benefit from this authorization. The FSRA has validated Binance’s operation, which is organized around three entities: Exchange, clearinghouse, and retail broker-dealer. This structure meets the requirements of the regulator, one of the most stringent in the world.
Richard Teng emphasized the importance of this advancement: “Holding an FSRA license demonstrates that Binance meets the highest international standards”, particularly regarding compliance, governance, and risk management. The timing creates a paradox: Binance strengthens its regulatory legitimacy while one of its executives suffers a hack revealing the flaws of traditional tools.
Bitcoin is trading around $91,900, down 1% over the past seven days. The market remained stable despite the incident, proof of investors’ growing maturity in the face of negative news concerning exchanges.
Last chance! Get $90 in BTC or $50 off when purchasing the Ledger wallet of your choice. The offer ends soon:
Related articles:
