CoinEx Founder: Binance Incident Revealed Three Avoidable Security and Operational Flaws Haipo Yang, founder of CoinEx, stated that Binance's recent security breach exposed at least three critical mistakes that could have been completely avoided, highlighting a failure of operational discipline rather than a lack of sophisticated technology. First, development and operations environments lack strict isolation; Production access should be limited to dedicated hardware without third-party software, while separating daily communication and surfing to independent devices. Second, the operations stack lacks meaningful two-factor authentication (2FA), which allowed full compromise of production using a leaked single credential instead of hardware-bound MFA enforcement through tools like AWS Session Manager. Third, the multi-signature MPC installation existed in name only, as the signers failed to perform essential independent verifications, causing the entire scheme to crash on a single node breach; Yang emphasized that multisig mechanisms are only effective when signers maintain mutual distrust and independently verify each raw transaction instead of blindly signing upstream requests. - Link.