CZ Says He Urged Pausing Bybit Withdrawals After the Hack

Changpeng Zhao said he publicly called for withdrawals to be paused after the Bybit hack so that abnormal outflows of funds could be stopped, according to Blockonomi. The Binance co-founder made the comments on September 25, 2026, during an interview on the When Shift Happens podcast, hosted by KevinWSHPod.

Zhao framed the suggestion as a precaution rather than a rule. Suspending services, he acknowledged, disrupts trading continuity and inconveniences users who need their funds. Even so, he told the podcast that security risks should take priority in those cases. Bybit did not pause withdrawals, and Zhao noted that no further problems followed — an outcome he called proof that there is no absolute right or wrong in these situations. What matters, in his account, is how well the risk is assessed. He pointed to Binance’s own handling of its 2019 hack, and said the exchange’s later market share held up despite criticism that followed the 2025 market crash.

Key facts

• Zhao made the remarks on September 25, 2026, on the When Shift Happens podcast hosted by KevinWSHPod.
• He said he publicly suggested pausing withdrawals after the Bybit hack to prevent further abnormal fund outflows.
• Bybit did not pause withdrawals, and Zhao said no further issues occurred afterward.
• He rejected the claim that his 2022 FTT tweet killed FTX, saying the exchange failed because it lacked liquidity.
• Zhao said he applied for his 2025 pardon through a lawyer and never met or spoke with President Trump.

Zhao’s account of the FTX collapse

The interview also revisited the 2022 tweet in which Zhao said Binance would sell its FTT holdings, a post widely blamed for triggering FTX’s failure. Zhao pushed back sharply, saying that if a competitor can kill your company with a single tweet, then you do not have a company. He characterised the post as a transparent disclosure and said he had not expected a major market reaction. In his telling, FTX collapsed because it lacked liquidity after misusing customer funds, and he cited prior reporting on its finances along with a response from Alameda’s CEO. The tweet, he argued, was not the underlying cause.

Binance’s launch and the “four” meme

Zhao also recounted Binance’s 2017 launch, when he redirected an existing exchange-software team to build a crypto-to-crypto platform. He credited the speed of the early build to a hardworking, humble and closely aligned team, while conceding that strong deference to leadership can make candid feedback difficult. He went on to explain the “four” meme as shorthand for concentrating on education, compliance and products while disregarding misleading negative narratives.

Asked about his pardon, which he said he secured in 2025, Zhao said he applied through a lawyer and never met or spoke with President Trump. He maintained that his conviction concerned inadequate anti-money-laundering controls and called the punishment unusually severe, while acknowledging that his own view is biased. Looking ahead, he said he intends to advise on crypto policy, invest in Web3 and offer free education.

Why it matters

Zhao’s comments land at a point when exchange operators are still arguing over whether to halt withdrawals during an active breach. His position — that security should outrank trading continuity — sits against the industry’s usual instinct to keep markets open and let users exit freely. The Bybit episode gives both camps material: nothing worsened after the exchange stayed open, but Zhao’s point is that the outcome could have gone the other way. His remarks on FTX also matter because they keep a long-running dispute over cause and blame alive years after the collapse.

What to watch

Whether other exchanges adopt pre-planned withdrawal-pause thresholds after a breach is the practical test of Zhao’s argument, and any future incident will be measured against how Bybit handled its own. His stated plans in policy advice, Web3 investing and free education give the clearest signal of where he expects to remain visible.

Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.

Source: Blockonomi