Curve founder Michael Egorov says Binance’s $6.36B breach shows why crypto needs DeFi

Michael Egorov says privileged access to customer funds remains a major vulnerability for centralized exchanges, while decentralized protocols and self custody offer alternative security models. The Binance hack on October 29 highlights the danger of privileged access that can redirect customer funds, a weakness truly decentralized protocols do not share, according to Michael Egorov, founder of Curve Finance and Yield Basis. In comments shared with Crypto Briefing, Egorov said centralized exchanges rely on privileged signing infrastructure that can expose customer assets if attackers compromise the systems or people controlling it. Blockchain intelligence firm TRM Labs estimated that approximately $6.36 billion was stolen from Binance wallets across ten blockchains, making it the largest cryptocurrency theft on record. Binance said its preliminary investigation found no evidence of a private key leak, while TRM Labs pointed to a likely compromise of the exchange’s hot wallet signing infrastructure. The exchange has pledged to cover all customer losses and said approximately $3 billion in affected assets had been frozen with assistance from industry partners. Curve founder says dece...