Coinbase Keeps 99% of Customer Crypto Offline After Binance Hack

Coinbase reassured customers that it was not affected by the recent Binance hack, where attackers stole about 6.4 billion dollars from the exchange's hot wallets. The U.S. exchange stated that over 99% of customer assets are stored in cold storage, which is offline and inaccessible via the internet. Funds are only moved to hot wallets as needed by customers. Coinbase outlined its security measures, including splitting private keys for cold wallets and limiting access to hot-wallet signing services. Transfers from cold to hot wallets are capped, and unusual withdrawal spikes are reviewed by staff. The exchange can also activate 'kill switches' to take signing keys offline. Coinbase emphasized its controls against insider threats, noting a past incident where criminals bribed support agents to steal data from less than 1% of users. Additionally, Coinbase reported 8.6 billion dollars in cash and cash equivalents and 377 billion dollars in assets as of September 30. The company acknowledged the evolving threat of artificial intelligence and committed to further security investments.

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