Binance founder Changpeng Zhao has sparked debate by arguing it is statistically safer to store crypto on exchanges than in self-custody, citing data from analyst Willy Woo showing 1.57 million BTC lost from self-custody versus 1.51 million from exchanges. The data, from a December 2025 report, does not account for recent incidents like the Coldcard hack. Zhao noted that exchange hacks are more widely reported, while self-custody losses often go unreported. He recommended a balanced approach, splitting holdings among multiple custodians.
Binance founder Changpeng Zhao published a controversial opinion on X, arguing it is statistically safer to store crypto assets on exchanges than in self-custody. His comments came as the Coldcard saga continued to unfold.
Zhao cited data from popular analyst Willy Woo, which shows that 1.57 million BTC has been lost from investors storing their holdings in self-custody. This compares to 1.51 million BTC lost from those keeping assets on exchanges.
The data Woo shared comes from a December 2025 report and has not taken into consideration the latest hacks and incidents. These include the Coldcard fiasco, in which the value of stolen BTC increases daily.
Zhao explained that hack data is easier to collect on the centralized exchange side, as most become major news. He said it is more difficult on the self-custody side, where hacks and lost coins are often not reported.
“On the exchange side, some deceased exchanges drag down the data. Binance (and a few other exchanges) have always covered users for any CEX side hacks,” Zhao stated. He concluded that a balanced approach, in which investors split their holdings into multiple custodians, is “probably best.”
