Coinbase Says 99% of Customer Crypto Stored Offline, Beyond Hackers’ Reach

In the wake of the $6.4 billion Binance hack, Coinbase moved to reassure its customers that their funds remain secure, emphasizing that over 99% of customer crypto assets are held in offline storage. The exchange detailed its multi-layered security architecture, which includes geographically distributed cold storage, private keys split into multiple fragments, and automated kill switches that can halt suspicious transactions. These controls are designed to keep the vast majority of assets disconnected from the internet, making them inaccessible to online attackers. The announcement comes as the crypto industry faces renewed scrutiny over exchange security following one of the largest thefts in history. Coinbase’s proactive disclosure aims to differentiate its custodial practices and reinforce trust among its 100 million+ verified users. As hackers grow more sophisticated, the exchange’s emphasis on offline storage and operational safeguards signals a broader industry shift toward institutional-grade security. For investors, the key takeaway is clear: not all exchanges are equally exposed, and custody architecture matters more than ever.