CoinEx Founder: Binance Incident Exposed Three Entirely Avoidable Security and Operational Flaws

Haipo Yang, Founder of CoinEx, stated that the recent Binance security breach exposed at least three critical mistakes that were entirely avoidable, underscoring a failure of operational discipline rather than a lack of sophisticated technology. First, development and operations environments lacked strict isolation; production access should be restricted to dedicated hardware free of third-party software, separating daily communication and browsing onto independent devices.Second, the operations stack lacked meaningful two-factor authentication (2FA), enabling full production compromise via a single leaked credential rather than enforcing hardware-bound MFA through tools like AWS Session Manager. Third, the MPC multi-signature setup existed in name only, as signers failed to conduct substantive independent verifications, causing the entire scheme to collapse upon a single node breach; Yang emphasized that multisig mechanisms are only effective when signers maintain mutual distrust and independently validate each raw transaction rather than blind-signing upstream requests.