Coinbase says more than 99% of the crypto it holds for customers sits in cold storage, meaning offline wallets that cannot be reached over the internet. The company frames this as a response to a $6.3 billion theft from rival Binance, which said attackers did not obtain its private keys but tricked the systems that approve withdrawals. Coinbase reported $377 billion in customer assets at the end of September and says those assets are kept separate from its own cash and crypto holdings, according to its latest quarterly filing. It cites a New York custody arm bound by fiduciary duties and independent SOC 1 and SOC 2 Type II audits.
Why it matters: It shows how exchanges are competing on custody design and offline storage after a major theft, a question with direct consequences for where users keep their funds.
Summary by Dextape, based on reporting by BeInCrypto. Written with AI from the publisher’s text and checked automatically for copied wording and unsupported figures. Not investment advice.
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