Coinbase says 99 percent of customer crypto is offline after $6.4bn Binance hack
The exchange reassured clients that it was unaffected by the $6.4 billion breach at Binance, citing offline cold storage, split private keys and automated kill switches.
Key takeaways
- 1Coinbase confirmed it was not affected by the $6.4 billion hack on Binance.
- 2The exchange holds more than 99 percent of client assets in offline cold storage.
- 3Security controls include split private keys and automated emergency kill switches.
Coinbase told customers on Tuesday that it was not affected by the $6.4 billion hack targeting competitor exchange Binance, assuring users that their funds remain secure. The US-based exchange issued a detailed breakdown of its custody systems to ease market concerns after Binance suffered one of the largest security breaches in cryptocurrency history.
According to Decrypt, Coinbase informed clients that it holds more than 99 percent of all customer crypto in offline storage systems isolated from internet connections. The company said its operational safeguards also rely on split private keys, which distribute access authority across separate systems, along with automated kill switches capable of stopping platform activity if suspicious movement is detected.
Coinbase is the largest cryptocurrency exchange in the United States and serves as a primary custodian for retail traders and institutional investment funds. Keeping assets in offline cold storage is an industry standard designed to prevent external hackers from gaining access to private keys over online networks, leaving only small amounts in hot wallets for daily trading liquidity.
The statement comes amid renewed focus on exchange fund protection following major security failures across the trading sector. Investors will watch whether rival exchanges release updated disclosures regarding their cold storage ratios and emergency security controls as the impact of the Binance breach continues to unfold.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.