- CZ has defended his earlier tweet announcing a possible exploit on Unsiwap V3 that was later confirmed as being a false positive.
- According to CZ, he would rather be wrong than risk people losing money.
- He added that ‘speed is of the essence when dealing with security issues.’
- The alleged Uniswap V3 exploit has been confirmed as a Phishing Attack.
Binance CEO, CZ, has defended a Tweet he posted announcing a possible exploit on Uniswap V3 that had allegedly resulted in the loss of 4,295 Ethereum that was laundered on Tornado Cash. The exploit was later determined to be a false positive.
A few reflections on this “incident” handling. Different information sufficiency, different choices, different impacts.
A thread: 1/9 https://t.co/wxcMPr6JAz
— CZ 🔶 Binance (@cz_binance) July 12, 2022
Speed is Of the Essence When Dealing With Security Issues – CZ.
CZ posted the above Twitter thread reflecting on the decision stating that had he opted to wait for a confirmation from the Uniswap team and the exploit was ongoing, it would have resulted in the loss of millions of billions worth of user funds.
He added that informing the crypto community was essential as ‘speed is of the essence when dealing with security issues.’ He said:
I could have waited until I got the private contact info for the Uniswap team. It would have avoided any public “panic”. But if this was a real exploit, millions or billions more could have lost during that time.
Speed is of the essence when dealing with security issues, when (3 million users’) funds are at stake.
My Image Might Take A Hit, But Better than People Losing Money – CZ
CZ explained that he had reached out to Ethereum’s Vitalik, but he could not wait for his response due to the likelihood of it being a severe security issue. He thus opted to ‘pull the trigger’ before Binance’s security team confirmed the incident.
CZ defended his quick reaction by stating that he could always delete his tweet or apologize for being wrong.
In addition, he was okay with his image taking a hit from the event being false. But he was not okay with the possibility of people losing money by delaying informing the crypto community. He added:
We have to make decision with incomplete information, and try to strike the right balance.
This was 12:45am (mid night). And I just came home from a gala dinner.
The Uniswap Community Responded Quickly – CZ.
Furthermore, due to his initial tweet, the Uniswap community responded quickly, putting CZ in touch with the Uniswap team, who confirmed the incident as a Phishing attack.
CZ then updated his first tweet with the above-mentioned Twitter thread explaining why he ‘pulled the trigger’ on the situation. He added:
in my defense, I even added the word “potential exploit” to my original tweet just to be cautious.
By 1:04AM, it was done. This is how decentralized teams work together. We never spoke before, but still keeping each other #SAFU.