Binance founder Changpeng Zhao said that, from a statistical point of view, keeping crypto on exchanges appears safer than storing it in self-custody wallets. He made the comment while responding to custody security data shared by Willy Woo. According to Woo’s figures, self-custody wallets have cumulatively lost about 1.57 million BTC, while exchanges have lost about 1.51 million BTC, leaving the two totals close to even. Zhao argued that hacks affecting exchanges are easier to track and often make headlines, while losses and theft on the self-custody side are harder to measure because many incidents are never reported. He also said the exchange data is weighed down by failed platforms that have already gone bankrupt, while exchanges such as Binance have fully compensated users for platform-side hacks. Zhao added that he was not arguing one storage method is universally better, saying each comes with a different risk profile and may suit different types of users, with a balanced approach possibly being the safer choice.
PANews reported on Aug. 4 that Binance founder Changpeng Zhao said storing crypto on exchanges is safer than using self-custody wallets when viewed on a statistical basis.
Zhao made the comment in response to custody security data posted by Willy Woo. The figures shared by Woo show that self-custody wallets have cumulatively lost about 1.57 million BTC, while exchanges have lost about 1.51 million BTC. The gap between the two is small.
Zhao said hack-related data is easier to collect on the exchange side and often becomes headline news. On the self-custody side, by contrast, losses and theft are harder to count because such incidents are usually not reported.
He also said the exchange figures are dragged down by platforms that have already gone bankrupt, while exchanges including Binance have fully compensated users for platform-side hacks.
Zhao added that he was not saying one method is better in every case. Different custody models carry different risk profiles and suit different groups of users, and a balanced approach may be the most prudent option.
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