Bybit CEO says exchanges must assume hacks will happen to survive breaches

Ben Zhou said the exchange built its own hardware cold storage system requiring physical staff presence after previously relying on third-party wallet providers.

By Divyansh Mishra, YourKhabri DeskNov 4, 2026, 01:32 AM UTC1 min readbybitben-zhouexchangessecurity

Key takeaways

1Bybit CEO Ben Zhou said exchanges must plan for security breaches rather than relying solely on prevention.
2Bybit replaced third-party cold wallet storage with a proprietary hardware system requiring physical staff to authorise Hardware Security Modules.
3Zhou said proprietary custody systems are costly and time-consuming, leaving most projects reliant on third parties.
4Binance suffered a $6.3bn breach linked to North Korea, with $2.85bn frozen or seized, according to earlier reporting.

Bybit co-founder and chief executive Ben Zhou said crypto exchanges must shift their strategy from preventing attacks to assuming breaches will happen, according to an April 21, 2026 interview reported by Wu Blockchain on Nov 4. Zhou said one of the biggest changes in operational thinking was the move toward assuming an attack is inevitable to ensure a company survives.

Zhou said Bybit previously relied on a third-party vendor for its cold wallet storage before constructing its own banking-grade hardware system. The internal setup requires employees to be physically present to authorise the platform's Hardware Security Modules. This physical requirement stops remote attackers from accessing the exchange's most sensitive storage systems.

Building proprietary infrastructure requires heavy financial investment and time, according to Zhou. He said these costs mean most crypto projects still depend on external security providers for their digital asset custody. Zhou said while third-party reliance is common, the move to in-house systems provides greater control over the security environment.

Security strategies must counter social engineering tactics alongside technical vulnerabilities, Zhou said. He said companies need to deploy multiple defensive layers built on the expectation that primary perimeters will eventually fail. This approach focuses on ensuring a company can continue to operate and protect its users after a security incident occurs.

Exchange security remains a central focus across trading venues following recent high-profile losses. On Nov 3, YourKhabri reported that Binance suffered a $6.3bn cyber breach linked to North Korean hackers. Authorities have since recovered or frozen $2.85bn of the stolen digital assets.

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Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.