CZ Challenges Self-Custody Narrative: Are Exchanges Safer Than You Think?
Binance founder Changpeng Zhao has reignited the long-running custody debate in the cryptocurrency industry by arguing that exchanges may actually be statistically safer than self-custody for the average user.
This stance comes after prominent on-chain analyst Willy Woo highlighted data from River's 2025 Bitcoin ownership report, which shows that approximately 1.57 million BTC has been permanently lost through self-custody, compared to around 1.51 million BTC lost on cryptocurrency exchanges.
CZ believes the comparison may actually underestimate the risks associated with self-custody, as many cases of individuals losing access to their wallets are rarely reported publicly.
The Binance founder highlighted the importance of institutional security measures that major exchanges have implemented over the years, including multi-signature wallet systems and cold storage solutions.