BitMEX founder Arthur Hayes has issued an important security warning to investors.
Arthur Hayes: ZEC Holders Should Withdraw Their Assets from Exchanges
Hayes stated on social media that users holding Zcash (ZEC) assets on centralized exchanges (CEX) should withdraw these assets to their own wallets as soon as possible for the security and privacy of their funds.
Hayes also emphasized the importance of users enabling ZEC’s “shield” feature. This feature obscures transactions, protecting the identities of both senders and recipients, thus reinforcing Zcash’s core purpose of a privacy-focused financial transaction model.
According to experts, holding assets on centralized exchanges can pose additional risks to users due to reasons such as cyberattacks, regulatory risks or exchange bankruptcy.
Hayes’ warning comes at a time of increasing regulatory pressure, particularly in the crypto market, and intensified regulatory scrutiny of privacy-focused projects.
Arthur Hayes is known in the crypto community for his pronouncements advocating for decentralization and user control. His latest call is seen as a step toward emphasizing the need for privacy-focused assets like Zcash to be protected in accordance with his philosophy.
*This is not investment advice.