As Binance Battles $6.3B Hack Fallout, Coinbase Reveals 99% of Customer Crypto Assets Are in Cold Storage

Coinbase said in a Wednesday blog post that more than 99% of customer assets are held in cold storage, or offline wallets, and that it was not affected by the Binance security incident. The largest U.S. cryptocurrency exchange said customer holdings are kept on a 1:1 basis and are neither lent nor used without authorization. The disclosure followed an October 29 Binance heist in which about $6.34 billion was stolen from internet-connected hot wallets; Binance said it had replenished 98% of affected assets with its own funds and expanded proof-of-reserves coverage to 44 cryptocurrencies. Separately, Brazil’s Mercado Bitcoin suspended withdrawals after a reported $45 million hack.