Changpeng Zhao explains his latest controversial Uniswap tweet

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Binance CEO Changpeng Zhao said the warning about the Uniswap attack was meant to protect users’ interests. He said, however, that he could wait for a response from Ethereum founder Vitalik Buterin for any confirmation. Admitting he tweeted before getting confirmation, he said any loss to his reputation was better than people losing money.

A successful phishing operation

Earlier, Changpeng Zhao said in a tweet that there might be a potential hack on the Ethereum blockchain’s Uniswap V3 protocol. The hacker had stolen 4,295 ETH and was using Tornado Cash to launder his theft, he said. It was later clarified that the Uniswap protocol was safe and that the exploit was a phishing campaign.

However, CZ justified his alert by saying that billions of dollars could have been lost if it was a real hack.

“I could have waited to have the private contact details of the Uniswap team. This would have avoided any public “panic”. But if it was a real feat, millions or billions more could have been lost during that time.”

Vitalik Buterin’s response for confirmation

In a screenshot from Binance’s internal chat, CZ informs his team that he has asked Vitalik Buterin to confirm the hack. However, he later admitted in a recent tweet that he hadn’t waited for the Ethereum founder’s response. “I pulled the trigger (posted the tweet) before our security team even confirmed“. He said he was in a difficult position to make a decision with incomplete information.

Although not a full-fledged compromise, this episode explains how important it is to give early warning of hacks of any kind. Reacting to this, crypto enthusiast John Shutt said that the whole storyline gave the community a chance to test the crisis button.

“Luckily, CZ’s tweet about a possible Uniswap hack was a false alarm. But it gave us the opportunity to test the crisis button at UMA and see that it brings everyone into the room immediately.“

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