Changpeng Zhao, founder of Binance, stated on August 4 that keeping cryptocurrency on an exchange is statistically safer than self-custody. On-chain data reveals that 1.57 million BTC have been lost through self-custody, compared to approximately 1.51 million BTC lost in exchange hacks. CZ also highlighted Binance’s SAFU fund, which holds approximately $1 billion in reserves and fully covered the loss of approximately 7,000 BTC during the 2019 hack without any impact on users. This stance reignites the debate between self-custody and delegated custody, in a context where individual losses, although invisible, collectively surpass the total damage from all exchange breaches combined. Analysts note, however, that a significant portion of self-custody losses involves dormant early-era holdings, potentially including coins linked to Satoshi Nakamoto.
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