Binance co-founder Changpeng Zhao, known as CZ, reposted a post from analyst Willy Woo discussing Bitcoin loss statistics and said that, if the numbers are accurate, exchange custody may look safer than self-custody from a statistical standpoint. Zhao noted that exchange hacks are easier to count because they are usually public, while thefts or accidental losses tied to self-custodied wallets often go undisclosed, making that side of the data harder to capture. He also said exchange figures are affected by incidents involving platforms that later collapsed. Zhao did not argue that one model is universally better. Instead, he said different custody methods suit different users and that a balanced approach to holding assets may be the better option. The discussion followed Woo’s earlier figures showing about 1.57 million BTC permanently lost through self-custody, compared with about 1.51 million BTC lost through exchange hacks, failures and related incidents.
ChainCatcher reported that Changpeng Zhao, or CZ, reposted a Willy Woo post on Bitcoin loss data and said that if the figures are accurate, assets held on exchanges may be safer than self-custody from a statistical perspective.
Zhao said exchange hacks are easier to measure because those incidents are more likely to be recorded publicly. By contrast, thefts involving self-custodied wallets or cases where users lose access to their assets often are not publicly disclosed, which makes the data harder to collect. He added that exchange-side numbers are also influenced by losses tied to exchanges that have already gone out of business.
CZ also said there is no absolute winner between custody models. Different arrangements fit different types of users, he said, and a balanced approach to asset custody may be the better choice.
Woo had previously published figures showing that about 1.57 million BTC were permanently lost through self-custody. Separately, about 1.51 million BTC were lost through exchange hacks, exchange failures and similar incidents.
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