Coinbase says 99% of customer assets are in cold storage following Binance’s $6.3B hack

The exchange said its systems were unaffected by the Binance breach and detailed safeguards designed to prevent unauthorized withdrawals. Coinbase said Wednesday that more than 99% of customer assets are held in cold storage, outlining its security measures following the $6.3 billion hack at rival exchange Binance last week. In a security update, Coinbase said its systems and customer funds were unaffected by the breach. The exchange keeps a small portion of assets in internet connected hot wallets to process withdrawals, while continuously transferring excess balances into offline storage. The company said its wallet infrastructure uses distributed private keys, multiple approval requirements and withdrawal limits to prevent unauthorized transfers. Its security systems also monitor unusual transaction activity and can halt wallet signing operations when suspicious behavior is detected. Coinbase added that no single employee has standing access to its production wallet signing service, while sensitive changes require approval from multiple personnel. The company also uses additional authentication measures to reduce risks from compromised employee devices or credentials. The exchan...