On-Chain Researcher Analyzes Coinbase Security, Hackers Find It Hard to Breach

On-chain researcher Zeeme analyzed why hackers can attack Binance, Bybit, and Bitget, but find it difficult to breach Coinbase. He pointed out that Coinbase holds approximately 959,000 BTC, valued at about $10.33 billion, and has not suffered such attacks in 14 years. Zeeme explained that many exchanges concentrate billions of dollars in a few hot wallets for quick withdrawals, while Coinbase employs Multi-Party Computation (MPC) technology, ensuring that complete private keys are not stored on disks or in memory. Each key is split into shards upon generation and stored in isolated hardware chips. In contrast, in October, hackers compromised a DevOps engineer's computer at Binance, hijacking hot wallet signatures and transferring about $6.36 billion within 20 minutes. However, at Coinbase, even if an engineer's computer is breached, only a useless shard of the key can be obtained. Additionally, Zeeme corrected that the approximately 69.8 million addresses mentioned in the post are Coinbase's deposit addresses, not the wallets holding funds; Coinbase also has cold and hot wallets.

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