CZ reflects on security trade-offs after Bybit hack, explaining his recommendation to pause withdrawals as a precautionary measure.
Security & Exploits ·
On September 25, 2026, CZ discussed his recommendation to pause withdrawals following a Bybit security incident, framing it as a precautionary approach to limit potential fund outflows. He acknowledged the inherent tension between operational continuity and security—noting that service suspensions can disrupt trading and affect users—while arguing that managing security risks should rank higher in the decision-making hierarchy.
Bybit opted against implementing a withdrawal pause, and the incident did not escalate further. CZ characterized this outcome as evidence that no universally correct response exists in such scenarios; rather, the critical factor is conducting thorough risk assessment to weigh the specific circumstances and potential consequences of either action taken or foregone.