Binance founder Changpeng Zhao said statistical evidence suggests keeping Bitcoin on exchanges is safer than self-custody, weighing in on a debate triggered by a theft case tied to a Coldcard hardware wallet vulnerability. Zhao was responding to analyst Willie Woo, who cited figures showing 1.57 million BTC lost through self-custody versus 1.51 million BTC lost through exchanges. Zhao argued the comparison is incomplete because exchange hacks are easier to track and report, while many self-custody losses never make it into public records. He also said data from failed exchanges drags down the industry average.
The discussion picked up after the Coldcard-related incident. According to a Galaxy Digital investigation, about 1,367 BTC worth roughly $88 million has been stolen from 4,585 addresses since July 2026. Zhao added that exchanges such as Binance compensate users for losses on their platforms, while the risks involved in self-custody and exchange custody are fundamentally different. In his view, the better approach is to balance those risks rather than treat either storage method as universally superior.
Binance founder Changpeng Zhao said statistical data shows Bitcoin held on exchanges is safer than self-custody.
Zhao was responding to analyst Willie Woo, who said self-custody has led to 1.57 million BTC being lost, compared with 1.51 million BTC lost through exchanges. Zhao said exchange hacks are easier to collect and report, while losses tied to self-custody often go unrecorded. He also argued that data from bankrupt exchanges pulls down the industry average.
The debate followed a theft incident linked to a Coldcard hardware wallet vulnerability. According to a Galaxy Digital investigation, about 1,367 BTC has been stolen from 4,585 addresses since July 2026, with losses estimated at roughly $88 million.
Zhao added that exchanges including Binance compensate customers for losses independently, while the risks in self-custody and exchange custody are different in nature. He said a balanced response is the better course.
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