CZ Weighs in on Cryptocurrency Storage Debate

Binance founder Changpeng Zhao (CZ) has weighed in on the debate over the safe storage of cryptocurrencies, citing statistics that suggest holding assets on centralized exchanges may be safer than self-custody.

CZ made his comments on X, noting that exchange-based attacks are often publicized and therefore easily traceable. In contrast, losses from cold wallets can go unreported, which skews the data in favor of exchanges.

He also pointed out that security breaches experienced by exchanges that ceased operations in the past negatively impacted statistics for centralized exchanges. However, CZ emphasized that some large exchanges, including Binance, fully compensated users for losses incurred during such incidents.

CZ is not advocating for storing assets on exchanges as the sole option, but rather proposing a balanced approach to custody methods, which present different risk profiles.