Coinbase Explains Cold-Storage Defences After Binance Breach Shakes Crypto Industry
Summary
Coinbase said it was unaffected by the reported Binance hot-wallet incident and that more than 99% of customer assets are held in cold storage. It cited distributed signing keys, withdrawal limits, anomaly detection and emergency controls that can halt transaction signing. These measures can reduce the risk of unauthorised transfers, but do not eliminate other risks such as account takeover, internal failures or software defects. The disclosure highlights the need for exchanges to explain custody practices and for users to assess them alongside audits and operational performance.
