BINANCE CEO: NEW WALLET SECURITY SOLUTION FAR SUPERIOR TO MULTI-SIG

Last updated: June 19, 2025, 19:11 | Written by: Changpeng Zhao

In a bold declaration that has sent ripples across the cryptocurrency landscape, the CEO of Binance, Changpeng Zhao (CZ), has proclaimed a new open-source wallet security solution to be significantly superior to multi-signature (multi-sig) wallets. CZ is concerned about how hackers infiltrated multiple exchanges multi-sig cold storage and stole crypto. He noted that the Lazarus Group has a broad and highly advanced skillset. He argued that pausing withdrawals after a security breach could help exchanges get a clearer read of the situationThis isn't just a minor upgrade; CZ believes this innovation will fundamentally reshape how wallet providers and custodians approach digital asset security. Single signature wallet: Multi-signature wallet: Only needs to import one recovery phrase to a single device. In case multiple people lose their private keys, recovery phrase importation must be done on each device. Provided you store your recovery phrase safely, you will have a way to access your funds.For years, multi-sig wallets have been considered a gold standard, offering enhanced protection against unauthorized access and theft.They operate on the principle of requiring multiple private keys to authorize a transaction, mitigating the risk of a single point of failure. The Gnosis Safe is now the first project on Binance Smart Chain with a different and more secure approach for managing funds. Most decentralized wallets use externally owned accounts (EOAs) if the private keys are lost or compromised, funds can be lost or stolen.But what if there's an even better way?CZ's announcement suggests just that, hinting at a future where digital asset security reaches unprecedented levels. The CEO of Binance claims that a newly open-sourced solution for wallet providers and custodians is far superior to multi-sig security and will reshape the industry.This new solution promises a paradigm shift, offering a more robust and sophisticated approach to safeguarding cryptocurrency holdings. El CEO de Binance afirma que una nueva soluci n de c digo abierto para proveedores de billeteras y custodios es muy superior a la seguridad de m ltiples firmas o 'multi-sig' yBut what exactly makes this new open-source security solution so revolutionary, and how does it compare to the established multi-sig security protocols? Scammers exploit multi-signature wallets by tricking victims into granting co-signer access or full ownership, turning a security feature into a weakness. Common tactics include seed phrase traps that bait victims into funding scammer-controlled wallets, and permission takeovers that lock victims out by adding scammers as co-owners or owners.Let's delve into the details and explore the potential implications for the entire crypto industry.

Understanding Multi-Sig Wallets: The Current Standard

Before we dive into the specifics of Binance's new solution, it's crucial to understand the workings and advantages of multi-sig wallets, the security method it aims to surpass. What is a Multi-Signature wallet? In a Multi-Signature wallet, instead of 1 private key, there are three keys associated with my wallet. And I can set a rule that says, You need at least two of three(2-of-3) keys to move funds from this wallet Hence, I required two keys to make any transaction.A multi-signature wallet, often referred to as a multi-sig wallet, is a type of cryptocurrency wallet that requires multiple private keys to authorize a transaction. The CEO of Binance claims that a newly open-sourced solution for wallet providers and custodians is far superior to multi-sig security and will reshape the industry. The CEO of Binance claims that a newly open-sourced solution for wallet providers and custodians is far superior to multi-sig security and will reshape the industry. In a tweet MoreThis is in contrast to a single-signature wallet, which only requires one private key.

How Multi-Sig Works

Imagine a safe that needs two keys to open.A multi-sig wallet works similarly. One of its standout features is the ability to allow multiple wallets to be controlled by one or more owners, adding an extra layer of security. Today, we re launching the BNB Safe{Wallet} Our multi-sig wallet is based on the Gnosis Safe protocol and now live on BSC opBNB. It offers a secure way to manage digital assets!Let's say you set up a 2-of-3 multi-sig wallet.This means three different private keys are associated with the wallet, and at least two of those keys must be used to sign and broadcast any transaction. Almost all crypto wallets are multi-cryptocurrency wallets, meaning they allow you to store and manage more than one type of cryptocurrency. Factors to consider when choosing a wallet. When choosing a multi-cryptocurrency wallet, you should ideally prioritize security features like two-factor authentication, encryption, and private key management.This configuration offers several benefits:

Increased Security: If one of the private keys is compromised (stolen or lost), the attacker cannot access the funds without obtaining at least one more key. Meet Richard Teng, Binance's New CEO. 😍💪 Binance, one of the leading cryptocurrency exchanges, recently appointed Richard Teng as its new CEO. Let's delve into Richard Teng's background and journeThis significantly reduces the risk of a single point of failure.
Shared Control: Multi-sig wallets are ideal for teams, organizations, or joint accounts where multiple parties need to approve transactions.This prevents any single individual from having complete control over the funds.
Enhanced Recovery: In some multi-sig setups, a lost or compromised key can be recovered using the other keys.This provides a safety net against accidental loss of access.

Practical Applications of Multi-Sig

Multi-sig wallets aren't just theoretical constructs; they're actively used in various real-world scenarios:

Escrow Services: Facilitating secure transactions between parties where trust is limited.
Corporate Treasury Management: Protecting company cryptocurrency holdings from internal or external threats.
Decentralized Autonomous Organizations (DAOs): Ensuring democratic control over DAO funds, requiring multiple member approvals for any spending.
Family Savings Accounts: Allowing multiple family members to access and manage shared cryptocurrency savings.

However, multi-sig wallets aren't without their limitations. The CEO of Binance claims that a newly open-sourced solution for wallet providers and custodians is far superior to multi-sig security and will reshape the industry. In a tweet published on Nov. 6, Changpeng Zhao linked to a new open-source release from Binance, declaring:The complexity of managing multiple keys can be a hurdle for less technically savvy users. Binance released a new wallet security, touted to be better than multi-sig. CZ said that it is set to reshape the landscape for wallets and custodian services.Furthermore, vulnerabilities can arise if not implemented and managed correctly. Skip to main content Bitcoin Insider. MenuAs CZ pointed out, even multi-sig solutions used by large exchanges have been compromised, prompting the need for a more robust solution.

Binance's New Wallet Security Solution: What We Know

While the specific technical details of Binance's new open-source wallet security solution remain somewhat veiled, CZ's tweet points to a potential game-changer for the industry.The announcement emphasizes the solution's superiority over multi-sig, suggesting it addresses existing vulnerabilities and offers enhanced protection mechanisms.

Potential Key Features and Advantages

Based on the available information and industry trends, here are some potential features and advantages that Binance's new solution might offer:

Threshold Signature Schemes (TSS): CZ hinted that the new technology is TSS based. TSS is an advanced cryptographic protocol that distributes the signing key across multiple parties, eliminating the need to reconstruct the entire key in one place. Get Binance Web3 Wallet. Every centralized crypto exchange comes with its own custodial hot wallet, and so does Binance, of course. But you don t have to settle for the default option. If you want to take the security of your funds to the next level, self-custodial wallets are always a superior choice.This mitigates the risk of key theft and makes it significantly harder for attackers to compromise the system.
Improved Key Management: Addressing the complexity of managing multiple private keys, the new solution might offer a more streamlined and user-friendly key management system.This could involve techniques like key sharding, secure enclaves, or hardware security modules (HSMs).
Enhanced Security Against Advanced Attacks: Targeting vulnerabilities exploited by sophisticated attackers like the Lazarus Group, the solution may incorporate advanced security measures such as multi-factor authentication, behavioral analysis, and real-time threat detection.
Open-Source Transparency: The open-source nature of the solution promotes transparency and allows the community to scrutinize the code, identify potential vulnerabilities, and contribute to its ongoing improvement.

BNB Safe{Wallet}: A Glimpse into Binance's Security Focus

While the ""superior"" solution hasn't been fully unveiled, Binance has already launched BNB Safe{Wallet}, a multi-signature wallet based on the Gnosis Safe protocol, accessible on Binance Smart Chain (BSC) and opBNB.This indicates Binance's commitment to enhancing user security and control.While not the ""superior"" solution CZ alluded to, BNB Safe{Wallet} offers a robust and secure way to manage digital assets, demonstrating Binance's proactive approach to wallet security. This post was originally published on this site Binance CEO CZ says that TSS a new cryptographic protocol is far superior to multi-sig and will transform the industryBNB Safe{Wallet} allows multiple wallets to be controlled by one or more owners, adding an extra layer of security.

Why is CZ So Confident? Unclock the full potential of Web3 with ease. TotalSig enables seamless access and interaction with Web3 applications and resources, with a simplicity of conventional solutions and with a security of multisig wallet! Supports wide array of EVM chains and provide all the functionalities to meet your need.Addressing Multi-Sig Vulnerabilities

CZ's confidence in the new solution stems from his awareness of the inherent limitations and vulnerabilities associated with even the most sophisticated multi-sig implementations.His concern about the Lazarus Group infiltrating multi-sig cold storage on multiple exchanges highlights the urgent need for a more resilient security paradigm.

Common Multi-Sig Vulnerabilities and Exploits

Despite their advantages, multi-sig wallets aren't impenetrable.Here are some common vulnerabilities and exploits that attackers can leverage:

Social Engineering: Attackers can trick users into granting co-signer access or full ownership of the wallet, effectively taking control of the funds.
Seed Phrase Traps: Scammers lure victims into funding wallets controlled by the attacker, often through phishing or fake investment schemes.
Permission Takeovers: Attackers gain control of a wallet by adding themselves as co-owners or owners, effectively locking out the legitimate users.
Compromised Key Storage: If the devices or systems storing the private keys are compromised, the attacker can gain access to the keys and authorize transactions.
Implementation Flaws: Bugs or vulnerabilities in the multi-sig wallet software itself can be exploited by attackers to bypass security measures.

The Need for Proactive Security Measures

CZ's statement underscores the importance of proactive security measures that go beyond simply implementing multi-sig.These measures include:

User Education: Educating users about common scams and social engineering tactics to prevent them from falling victim to attacks.
Secure Key Management Practices: Implementing robust key management procedures, such as hardware wallets, secure enclaves, and multi-factor authentication.
Regular Security Audits: Conducting regular security audits of the wallet software and infrastructure to identify and address potential vulnerabilities.
Real-Time Threat Detection: Implementing real-time threat detection systems to identify and respond to suspicious activity.

The Future of Wallet Security: Implications for the Crypto Industry

Binance CEO's claim that this new security solution is far superior to multi-sig has significant implications for the future of the cryptocurrency industry.If this new technology truly delivers on its promise, it could revolutionize how digital assets are secured and managed, leading to a more secure and user-friendly ecosystem.

Potential Benefits and Transformative Effects

Increased User Adoption: Enhanced security can instill greater confidence in cryptocurrency, attracting more mainstream users who may have been hesitant due to security concerns.
Reduced Losses from Theft and Hacking: A more robust security solution can significantly reduce the number of cryptocurrency thefts and hacks, protecting users from financial losses.
Greater Institutional Adoption: Institutional investors, who require the highest levels of security, may be more willing to invest in cryptocurrency if they are confident that their assets are well-protected.
Innovation in Wallet Technology: The new solution could spur innovation in wallet technology, leading to the development of even more secure and user-friendly wallets.
Shift in Security Focus: The industry may shift its focus from reactive security measures to proactive threat detection and prevention.

Challenges and Considerations

While the potential benefits are significant, there are also challenges and considerations to keep in mind:

Implementation Complexity: Implementing a new security solution can be complex and require significant technical expertise.
User Adoption: Users may be resistant to adopting a new security solution if it is perceived as being too complicated or inconvenient.
Ongoing Maintenance: Maintaining a robust security solution requires ongoing effort and resources to address emerging threats and vulnerabilities.
Cost: Implementing and maintaining a sophisticated security solution can be expensive.
Transparency and Trust: The open-source nature of the solution is crucial for building trust and ensuring that it is free from backdoors or vulnerabilities.

Examples of Multi-sig Wallet Hacks

Even with the best implementations, multi-sig wallets are not immune to compromise.Here are a few examples to illustrate that point:

BitGo Hack (2013): Although BitGo was an early leader in multi-sig security, a vulnerability in their system allowed hackers to bypass the multi-sig requirement and steal bitcoin.
Parity Wallet Hack (2017): A flaw in the Parity multi-sig wallet code allowed hackers to take control of multiple wallets, resulting in significant losses.
Coincheck Hack (2018): While the exact details are debated, Coincheck's lack of proper cold storage and potential mismanagement of private keys contributed to a massive theft of NEM tokens, despite using some form of multi-sig.

Richard Teng Takes the Helm at Binance

Amidst these developments, it's also important to note the recent change in leadership at Binance. Richard Teng has been appointed as the new CEO, succeeding Changpeng Zhao. O CEO da Binance alega que uma solu o de c digo aberto para provedores e custodiantes de carteiras muito superior seguran a multi-sig e vai dar nova forma ao setor. Em um tu te publicadoThis transition comes at a crucial time for the exchange, as it navigates regulatory challenges and seeks to maintain its position as a leading player in the crypto industry.Teng's leadership will undoubtedly play a significant role in shaping Binance's future security strategies and its adoption of innovative solutions like the one CZ has touted.

Taking Control of Your Crypto Security: Actionable Steps

Whether you're a seasoned cryptocurrency user or just starting, it's crucial to take proactive steps to protect your digital assets. There are a number of possible applications for the technology. Here are some of the most common use cases of multi-signature cryptocurrency wallets. Increasing security. By using a multisig wallet, users are able to prevent the problems caused by the loss or theft of a private key. So even if one of the keys is compromised, the funds are stillHere are some actionable tips to enhance your crypto security:

Choose a Reputable Wallet: Research and select a wallet with a strong security track record and a commitment to user security.
Enable Two-Factor Authentication (2FA): Enable 2FA on all your cryptocurrency accounts to add an extra layer of protection against unauthorized access.
Use a Hardware Wallet: Store your private keys on a hardware wallet for enhanced security against online threats.
Be Wary of Phishing Scams: Be cautious of suspicious emails, messages, or websites that ask for your private keys or personal information.
Keep Your Software Updated: Keep your wallet software and operating system up to date to patch security vulnerabilities.
Educate Yourself: Stay informed about the latest cryptocurrency security threats and best practices.
Use Strong, Unique Passwords: Use strong, unique passwords for all your cryptocurrency accounts and avoid reusing passwords.
Consider a Multi-Sig Wallet (Carefully): If you require shared control or enhanced security, consider using a multi-sig wallet, but be sure to understand the risks and complexities involved.
Diversify Your Holdings: Don't store all your cryptocurrency in one place.Diversify your holdings across multiple wallets and exchanges.
Regularly Back Up Your Wallet: Regularly back up your wallet to prevent loss of funds in case of hardware failure or other unforeseen events.

Conclusion: Embracing a More Secure Future

The announcement by Binance CEO regarding a new wallet security solution significantly superior to multi-sig marks a pivotal moment in the evolution of cryptocurrency security. A multi-signature wallet is a crypto wallet that requires multiple private keys to unlock as a way of enhancing security. For examples, a two-of-three multi-signature wallet would require a pass key from two of three cosigners on the wallet.While the specifics of this new technology are still emerging, its promise of enhanced protection against sophisticated attacks and streamlined key management has the potential to revolutionize how digital assets are secured. BNB Chain has recently launched a secure multi-signature wallet service named BNB Safe{Wallet}, built on the Gnosis Safe protocol. This innovative service enhances security and is accessible on both the Binance Smart Chain (BSC) and opBNB networks.Multi-sig wallets have served as a crucial layer of security, but their vulnerabilities have been exposed, highlighting the need for more advanced solutions like TSS, potentially implemented in Binance's new system.By embracing proactive security measures, staying informed about emerging threats, and choosing reputable wallets with robust security features, users can significantly reduce their risk of falling victim to cryptocurrency theft and fraud.The future of cryptocurrency hinges on building a more secure and trustworthy ecosystem, and this new security solution may pave the way for wider adoption and innovation in the years to come. Binance has announced the launch of BNB Safe{Wallet}, a secure, multi-signature wallet based on the Gnosis Safe Protocol, now accessible on both Binance Smart Chain (BSC) and opBNB. The new wallet facilitates a safe venue for managing digital assets, reflecting Binance's continuous commitment to boosting user security and control.As the details unfold and the open-source community scrutinizes the code, we can anticipate a new era of wallet security. Binance has announced the launch of BNB Safe{Wallet}, a secure, multi-signature wallet based on the Gnosis Safe Protocol, now accessible on both Binance Smart Chain (BSC) and opBNB. The new wallet faThe key takeaway is this: Security is paramount. Don't wait to secure your digital assets; implement best practices today and stay vigilant in the ever-evolving world of cryptocurrency.