After the recent tweet of Peter Schiff (CEO of Euro Pacific Capital), in which he complains of being unable to access his $100 worth of Bitcoin on his crypto wallet, lots of people on crypto Twitter seem to have something to say about it.
Big-names in the crypto industry are not steering clear of this, including the chief of Binance – CZ. Commenting on the incident, he states that centralized crypto exchanges can store other people’s crypto safely and that they are more reliable than crypto wallet owners who cannot even secure their private keys.
Need to work on wallets, he adds.
However, the Casa CTO, Jameson Lopp, has contradicted CZ, recalling the case of a major hack in 2019 when Binance got ‘relieved’ of $40 mln in Bitcoin.
‘People unable to secure a key even from themselves’
While replying to the recent tweet from Bitcoin antagonist Peter Schiff, who says he cannot access his BTC, the head of Binance states that since people are unable to secure their own wallet password (avoid losing it, he specifies), centralized crypto exchanges are the best solution for storing crypto.
Binance loses $40 mln worth of crypto to a hacker
However, the ‘cypherpunk’ and the CTO of Casa, Jameson Lopp, has reminded CZ of last year's hack, in which $40 mln in crypto was stolen from Binance as a result of a hacker’s attack.
The Binance team responded instantly. They began searching for the money on other exchanges and started improving its own security system.
‘Funds are SAFU’ also tweeted CZ back then, promising that the lost crypto will be compensated to the users from a Binance fund created for such situations.
Still, Jameson Lopp expressed his doubts whether a team of technical specialists will be better at securing crypto than the owner of this crypto, himself.
“There's little doubt that a team of specialists will be better at securing sensitive data than your average individual. However, only comparing the common risks of loss is shortsighted because it overlooks the systemic risks created by concentrating funds at a few custodians.”