Are personal wallets more dangerous?...Changpeng Zhao: "Bitcoin (BTC) should be stored in multiple places"

▲ Bitcoin (BTC), cryptocurrency wallet/ChatGPT generated image

Binance founder Changpeng Zhao claimed that storing cryptocurrencies on exchanges is safer than in personal wallets. According to statistics from cryptocurrency analyst Willy Woo, 1.57 million BTC of Bitcoin (BTC) disappeared from personal storage. This was 60,000 BTC more than losses from exchange storage.

According to the cryptocurrency media CryptoPotato on August 4 (local time), Changpeng Zhao cited Woo's data and posted on X (formerly Twitter) that “statistically, storing cryptocurrencies on exchanges is safer than in personal wallets.” Woo's statistics showed that 1.57 million BTC disappeared during personal storage. Losses from assets entrusted to exchanges were tallied at 1.51 million BTC.

However, this data was based on a report published in December 2025. Recent hacks and security incidents that occurred afterward were not included in the statistics. The Coldcard incident, where the scale of damage continues to grow, was also not reflected.

Changpeng Zhao explained that hacks occurring on centralized exchanges (CEX) are mostly reported as major news, making data collection easy. On the other hand, he pointed out that it is difficult to grasp actual losses from personal wallet hacks or losses because victims often do not report them. This suggests that personal storage loss statistics may be underestimated compared to actual damages.

Changpeng Zhao stated, “Some exchanges that went bankrupt or disappeared worsened the overall statistics,” and “Some exchanges, including Binance, have always compensated users for losses caused by centralized exchange hacks.” He added that a balanced strategy of storing cryptocurrencies across multiple custodians rather than entrusting them all to one place is “probably the best.”

[Article Summary]

-Changpeng Zhao presented statistics showing that personal storage losses amounted to 1.57 million BTC, which is more than the 1.51 million BTC lost from exchange storage.

-This statistic is based on December 2025 data and does not reflect recent hacks or the Coldcard incident.

-Changpeng Zhao stated that storing cryptocurrencies across multiple custodians is the most balanced strategy.

*Disclaimer: This article is for investment reference only and we are not responsible for investment losses based on it. This content should be interpreted for informational purposes only.*