Coinbase Says 99% of Customer Crypto Is Offline After Binance Hack

The controls Coinbase highlights

The centerpiece is offline storage, often called cold storage. Because the private keys controlling these assets are not connected to the internet, they cannot be reached through the kind of remote intrusion that hits online systems. Coinbase says this covers over 99% of customer crypto.

The company also points to split private keys, meaning no single piece of key material is enough on its own to move funds. Spreading control this way is intended to reduce the damage if one component or one person is compromised.

A third layer is the use of kill switches, which are emergency mechanisms designed to halt activity quickly if something goes wrong.

Why it matters

After a large exchange breach, users commonly ask where their coins are actually kept and who can access them. Disclosures like this give customers a way to compare custody practices between platforms, although a company's own description of its controls is not an independent audit.

Coinbase has not, based on the available details, reported any loss of customer funds. For users, the practical takeaway is to understand how their chosen exchange stores assets and what safeguards sit between an attacker and their balances.