- Key players urge against sole custody of USDT on exchanges.
- Risks include hacks, regulatory seizures, and access loss.
- DeFi adoption rises as users seek control over USDT.
Cryptocurrency leaders, including Changpeng Zhao and Tether officials, highlight increased risks in 2025 of holding USDT in exchange wallets due to hacks and legal vulnerabilities.
These warnings underscore growing threats to crypto assets’ safety and control, prompting users to consider self-custody alternatives to mitigate potential losses.
Crypto leaders are urging users to shift USDT away from exchange wallets. They highlight the risks associated with leaving assets vulnerable to hacks and regulations. Past incidents show increasing threats to crypto assets as centralized services become targets. Chainalysis Crime Report 2025 highlights that “2025 is a record year for crypto stolen from centralized services.”
Evidence shows key figures like Changpeng Zhao and Brian Armstrong emphasize independent custody. Their reminders stress holding private keys is crucial to protecting assets from becoming inaccessible if an exchange faces a compromise.
“Not your keys, not your coins.” – Changpeng Zhao (“CZ”), former CEO, Binance
Recent data indicate a 17% rise in stolen funds from exchanges in 2025. Users are increasingly moving their USDT to independent wallets. This trend reflects the market’s adaptation to protect assets amid growing risks in centralized exchanges.
Financial implications extend as security breaches challenge the trust in centralized platforms. Stablecoin holders face ongoing threats from potential bankruptcies and government interventions. These factors contribute to uncertainty within the crypto industry, as evidenced by an AMLC statement regarding the Anson Que case.
Users experience mounting concerns over asset safety due to repetitive hacking incidents. These result in loss of access and potential regulatory conflicts. Cryptocurrency forums and reports continuously flag instances of sudden restrictions impacting withdrawal abilities.
Insights from historical events suggest increased user migration to self-custodied wallets. Embracing blockchain technology and on-chain solutions provides more control and security. Industry trends signal robust development in non-custodial wallet technologies supported by community-driven initiatives.
