Coinbase said it was not affected by the hack of Binance that drained about $6.4 billion from the rival exchange’s hot wallets. It said more than 99% of its customer assets are kept in offline cold storage and that funds move to internet-connected wallets only as customers need them.
Coinbase said its safeguards include split private keys, limits on transfers from cold to hot wallets, staff review of unusual withdrawal spikes, and switches that can take signing keys offline. It said customer assets are held 1:1 and are not lent out unless customers direct it to. The company also flagged artificial intelligence as a fast-changing security threat.
