Binance remains the dominant centralized exchange from a security standpoint. Credit to CZ for operational execution.

That said, self-custody remains the only true risk mitigation. Holding assets onchain eliminates counterparty exposure.

Key systemic risk: A full Binance breach would trigger market-wide contagion. Even assets held elsewhere would face significant mark-to-market losses due to liquidity shock and panic selling. The exchange's size creates systemic risk that extends beyond direct exposure.

Implication: Diversify custody solutions. No single point of failure should control portfolio access.