TLDR
- Coinbase says the $6.3 billion Binance hack did not affect it.
- More than 99% of customer assets sit in cold storage.
- Coinbase uses split signing keys, withdrawal limits and activity monitoring.
- Binance says the attack began with a fake job interview.
- Binance says it has replenished about 98% of affected assets.
Coinbase (COIN) said Wednesday it was not hurt by the $6.3 billion Binance hack. The exchange laid out how it guards customer funds in a blog post.
Users come to Coinbase to keep their money secure. We make sure that stays true.
Secure custody is daily work for us, not a one-time achievement.
That means 1:1 backing, >99% of funds in offline cold storage today, audited financials, key splits, no single points of failure and…
— Coinbase 🛡️ (@coinbase) November 4, 2026
The headline number is 99%. Coinbase says more than 99% of customer assets sit in cold storage, offline and away from the internet.
It keeps a small hot wallet balance to handle deposits and withdrawals. The rest stays put.
How Coinbase Says It Locks Down Funds
Coinbase uses multiparty computation, or MPC. This splits signing power among separate participants, so no single place holds a full private key.
Withdrawal limits and unusual activity detection add more layers. Coinbase also has controls that can halt transaction signing.
Customers can turn on two-factor authentication and security keys. Coinbase Vault can require several approvals before a withdrawal goes through.
Coinbase says customer assets are held 1:1 and remain customer property. It says it does not lend or use them without customer instruction.
Its latest quarterly filing listed about $377 billion in platform assets. The company also reported $8.6 billion in cash and $2.2 billion in corporate crypto.
Those protections cover hosted Coinbase.com accounts. People using self-custody wallets still guard their own private keys.
What Happened at Binance
Binance says the attack began with a fake job interview. That gave hackers access to employee laptops.
On Oct. 29, the attackers sent fraudulent withdrawal requests. Reports say they reached an internal wallet signing service and moved assets outside the normal process.
Binance said Tuesday that the hackers also used an internal AI tool. Coinbase’s blog pointed to AI as a growing threat for employees, systems and customers.
Coinbase builds its security software in house. The Bybit and Bitget incidents reportedly involved outside vendor systems.
Coinbase has had its own trouble. In 2025, criminals bribed overseas support agents to get customer data, and the company said the cost could reach $400 million.
Coinbase also cites SOC 1 and SOC 2 Type II examinations and regulatory oversight. It admits these steps do not rule out a breach.
Binance co-founder Changpeng “CZ” Zhao said crypto firms need AI-based defenses and an industry alliance. He wants stolen funds frozen faster.
On Wednesday, Binance said it had replenished about 98% of the affected assets. It is buying the remaining 2% through market and over-the-counter channels.
Binance also expanded its Proof of Reserves to 44 tokens, up from 10. The new zero-knowledge proof is expected to take 50 to 60 hours to generate.
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