Binance (@binance) founder Changpeng Zhao (@cz_binance) says the crypto industry may be focusing on the wrong AI threat. In a post on X on October 23, he argued that AI does not need to break
Binance (@binance) founder Changpeng Zhao (@cz_binance) says the crypto industry may be focusing on the wrong AI threat. In a post on X on October 23, he argued that AI does not need to break Bitcoin's $BTC cryptography to hurt crypto users.
According to PANews, Zhao said people worry that AI will crack cryptocurrency, but the encryption that the internet and banking systems rely on is actually more fragile. He added that existing data leaks have already fuelled more phishing and social engineering attacks, and urged users to stay safe.
Zhao's core argument is that the cryptography protecting crypto systems is not the weak link. Crypto Briefing reported that he sees legacy banking and internet systems, which often use weaker encryption standards, as the softer target if AI-driven code-breaking ever became a serious threat.
That leaves people as the main point of attack. Leaked personal data lets criminals craft convincing, targeted messages. Zhao has raised similar concerns before. In August, after hardware wallet maker SafePal disclosed a data breach, Benzinga reported that the company warned the exposed order details could be used for targeted phishing and impersonation, and Zhao told users to watch for phishing attempts. SafePal said the incident did not involve seed phrases or private keys.
Industry figures point in the same direction. Crypto Daily, citing Chainalysis, reported that at least $14 billion flowed to on-chain scam addresses in 2025, with the average scam payment rising 253% year on year to $2,764. The same report said Chainalysis found AI-enabled scams were roughly 4.5 times more profitable than traditional scams.
Security firm Hacken attributed $306 million in first-quarter 2026 losses to phishing and social engineering, according to Hackread. That included a single $282 million hardware wallet scam in January, a case where keeping keys offline did not help once the holder was persuaded to act.
Zhao also cautioned that no crypto wallet or software is completely secure. His message to users was to remain alert and manage their own risks, which in practice means verifying senders, treating unsolicited requests with suspicion and limiting how much personal data is exposed.
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