Coinbase: Over 99% of Customer Assets Currently Held in Cold Wallets; Hot Wallets Hold Only a Small Amount to Meet Withdrawal Demand

November 4 — According to Coinbase's official blog, after Binance was reported to have experienced a hot wallet incident, Coinbase said in a post that it was unaffected and that its systems and customer funds are normal. Coinbase disclosed that more than 99% of customer assets are currently held in cold wallets, while hot wallets retain only a small amount of assets to meet withdrawal demand, with excess assets continuously transferred back to cold storage; assets in its custody vault products are held 100% in cold storage and isolated on-chain. Security measures include private key sharding, with keys not reassembled during signing, limiting the rate of transfers from cold wallets to hot wallets, anomaly detection, and an emergency stop mechanism that can take signing keys offline. Customer assets are held on a 1:1 basis and will not be lent out or used without customer instruction.