CertiK Research Team: Exchanges Should Set USD Limits on Hot Wallets

On November 10, according to Cointelegraph, the research team at security firm CertiK recommends that crypto exchanges set explicit USD limits on assets held in hot wallets, rather than relying solely on cold storage ratios to assess security.

CertiK noted that cold storage ratios can measure online risk exposure but cannot serve as a standalone security score; overly rigid storage ratios may also delay withdrawals, force exchanges to hastily shift funds, and concentrate risk within key management systems.

The team recommends that exchanges establish separate hot wallet limits per asset and blockchain, applying the strictest constraint among client liability ratios, estimated withdrawal demand, and absolute loss ceilings based on their own financial capacity and recovery capabilities, complemented by circuit breaker mechanisms to control potential losses.