Crypto Exchanges Tout Cold Storage After Binance Hack
Coinbase said more than 99% of customer assets are kept offline as exchanges race to reassure users after Binance lost about $6.34 billion.
- Following last week's Binance hack, cryptocurrency exchanges are disclosing asset storage ratios to reassure users, with Coinbase stating on Wednesday that more than 99% of customer assets are held in offline cold storage.
- Threat actors accessed Binance's internal wallet-signing service on October 29, stealing approximately $6.36 billion in about 20 minutes, according to TRM Labs, prompting the industry-wide disclosure campaign.
- South Korea's Financial Supervisory Service figures show Upbit holds 99.17% of assets in cold wallets, significantly exceeding the regulatory minimum of 80%, while Bithumb at 94.76% and Coinone at 85% have also disclosed ratios.
- Gate launched a "Proof of Security" framework on Thursday, reporting that 88.26% of its assets are in cold storage and stating this provides visibility into storage structures and loss-coverage scenarios.
- Coinbase employs distributed signing keys and secure multiparty computation to protect assets, though the exchange notes its crime insurance covers only a portion of theft and losses could exceed recoveries.
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Holders of bitcoins, ethereums and other digital chips can ensure the security of their assets on their own, or choose to delegate this task to intermediaries. Not without risk in both cases.
Coinbase gives new customers 15 euros in Bitcoin for the first purchase by the end of the year, and the record hack at Binance shows why the choice of the stock exchange is so important.
Crypto Exchanges Emphasize Cold Storage Ratios After Binance Attack
In the wake of the attack on Binance’s hot-wallet infrastructure last week, a wave of major crypto exchanges has moved quickly to reassure customers by publishing how much of their holdings sit offline in cold storage versus online in hot wallets. The disclosures matter because they directly affect how quickly an attacker could access user [...]
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