Binance founder Changpeng Zhao said acquiring a centralized exchange is far more complicated than buying other types of businesses, especially because security accountability can become difficult to untangle after a deal closes. Responding to a question about why he does not acquire smaller CEXs, Zhao said that if a hack happens after an acquisition, it may be hard to tell whether the issue came from a backdoor left by the previous team or from a newly introduced problem. That uncertainty, he said, raises both security and compliance risks for the buyer. Zhao did not rule out such acquisitions entirely. He said buying a centralized exchange is still possible, but the process is much more complex because of those added risks.
Changpeng Zhao, better known as CZ, said acquiring a centralized exchange is different from buying other businesses, responding to a question about why he does not acquire smaller CEXs.
Zhao said that if a hack takes place after an acquisition closes, it can be difficult to determine whether the incident was caused by a backdoor left by the previous team or by a new problem introduced later. In his view, that makes the security and compliance risks materially higher.
He added that acquiring a CEX remains possible, but said the process would be much more complicated.
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