2018 Warning Echoes: Vinny Lingham's Exchange Caution Gains New Urgency Amidst Recent Crypto Failures

A 2018 tweet from prominent entrepreneur and "Bitcoin Oracle" Vinny Lingham, advising cryptocurrency holders to "Don’t leave your coins on exchanges - especially during volatile time when things break," has resurfaced with renewed significance following a series of high-profile crypto exchange collapses and security breaches in recent years. Lingham's timeless counsel underscores the persistent risks associated with centralized cryptocurrency platforms.

Lingham, co-founder and CEO of blockchain-based identity management company Civic, has long been a vocal advocate for secure cryptocurrency practices. His 2018 statement, made amidst earlier market fluctuations, highlighted the inherent vulnerabilities of entrusting digital assets to third-party custodians, a concern that has proven prescient in the evolving crypto landscape.

The period between 2022 and 2025 has been particularly turbulent for centralized exchanges, marked by significant insolvencies and hacks. Major platforms like FTX, Genesis Global Capital, and Celsius Network filed for bankruptcy, leaving millions of users unable to access billions in funds. These failures were largely attributed to mismanagement, misuse of customer assets, and liquidity crises, echoing the "things break" scenario Lingham warned against.

Beyond insolvencies, exchanges have continued to be targets for cybercriminals. The 2025 Bybit hack, resulting in an estimated $1.4 billion in losses, and the 2024 DMM Bitcoin exchange breach, which saw $305 million stolen, illustrate the ongoing threat of security compromises. These incidents further emphasize the risk of centralized points of failure, where large sums of customer assets can be lost due to external attacks.

The recurring issues have reinforced the importance of self-custody, where individuals hold their private keys and maintain direct control over their digital assets, typically in hardware or software wallets. This approach mitigates the risk of exchange insolvency or hacking, aligning with Lingham's original advice to keep "coins off exchanges." As the cryptocurrency market continues to mature, the debate between the convenience of centralized exchanges and the security of self-custody remains a critical consideration for investors.