Coinbase Details Security Protocols and Offline Asset Storage Following Binance Hack
Coinbase has released a detailed overview of its security infrastructure in response to concerns following a $6.34 billion hack at rival exchange Binance. The company confirmed that over 99% of customer assets are held in offline cold storage, which is disconnected from the internet to prevent remote theft. To further mitigate risk, Coinbase utilizes split private keys and requires multiple approvals for sensitive actions to protect against phishing or compromised employee credentials. As of September 30, Coinbase reported $377 billion in platform assets and $8.6 billion in cash and cash equivalents, noting that customer assets are held on a 1:1 basis. While the company highlighted its robust safeguards, it acknowledged past security challenges, including a May 2025 incident involving bribed support agents. The exchange remains focused on evolving threats like artificial intelligence to maintain platform integrity.
Tickers: $COIN
Topics: Asset Protection Cold Storage Crypto Assets Cybersecurity