CZ Claims Exchange Custody Safer Than Self-Custody Based on BTC Loss Data

Binance founder cites data showing 1.57M BTC lost via self-custody versus 1.51M on exchanges, arguing centralized platforms offer superior security despite differing risk profiles.

Woofun AI reports that Binance founder CZ asserted that storing cryptocurrency on an exchange presents a safer option than self-custody from a statistical standpoint. He referenced data indicating 1.57 million BTC has been lost through self-custody mechanisms, compared to 1.51 million BTC lost on exchanges.

CZ noted that while self-custody losses are often unreported, exchange hacks are more visible, and platforms like Binance provide protection against such incidents. He emphasized that different methods carry distinct risk profiles suitable for various users, suggesting a balanced approach may be optimal rather than declaring one method universally superior.