Changpeng Zhao Warns Crypto Holders After $86 Million Ledger-Linked Theft, $142 Million Coldcard Exploit Put Wallet Security Under Scrutiny

Binance BNBUSD founder Changpeng “CZ” Zhao shared a cryptocurrency security guide on Sunday amid rising cases of hacks and unauthorized access.

Recommendation for Self-Custody Users

In an X article, CZ urged users to match their security measures with both their cryptocurrency holdings and technical abilities.

For self-custody users, he recommended “dedicated” offline devices, buying hardware wallets from “established” names, “strong” passcodes and verified transaction addresses.

The recommendations also addressed malware, tampering and physical theft. CZ advised keeping “multiple protected backups” in separate locations, while reminding that paper, metal and encrypted USB storage each involve different risks.

CZ also flagged Inheritance planning as a major challenge.

“Provide a recovery process without unnecessarily exposing funds during your lifetime,” he added. “A dead man’s switch can release instructions after prolonged inactivity. Research and test the service before relying on it.”

Recommendation for Centralized Exchange Users

Users holding assets on centralized exchanges were advised to evaluate each platform’s reputation, security resources, testing practices and business sustainability. The guidance warned that exchange custody carries “counterparty risk.”