TLDR
- Coinbase says the Binance hack did not touch its platform.
- It keeps more than 99% of customer assets in cold storage.
- Binance says the attack began with a fake job interview.
- Coinbaseās 2025 data breach could still cost up to $400 million.
- Binance says it has replenished about 98% of affected assets.
Coinbase (COIN) said Wednesday that the $6.3 billion Binance hack did not touch its platform. The exchange published a blog post to explain how it protects customer money.
Its main claim is simple. More than 99% of customer assets sit in cold storage, which is not connected to the internet.
A small hot wallet handles daily deposits and withdrawals. Everything else stays offline.
The post came about a week after the Oct. 29 attack on Binance. Hackers reportedly reached an internal wallet signing service and moved funds outside the normal withdrawal process.
The Numbers Behind Coinbaseās Pitch
Coinbaseās latest quarterly filing showed about $377 billion in platform assets. It also listed $8.6 billion in company cash and $2.2 billion in corporate crypto.
The exchange says it keeps customer funds apart from its own. It also says assets are held 1:1 and are never lent out without customer instructions.
Coinbase uses secure multiparty computation, or MPC, to split signing power across separate participants. No complete private key sits in a single place.
Withdrawal limits and tools that spot unusual activity add more layers. Coinbase says it can also halt transaction signing.
Customers can turn on two-factor authentication and security keys. Coinbase Vault can require several approvals before a withdrawal moves.
These protections cover hosted Coinbase.com accounts. People who use self-custody wallets must guard their own private keys.
Coinbase also points to SOC 1 and SOC 2 Type II examinations and regulatory oversight. The company says these checks do not rule out a breach.
How the Binance Attack Worked
Binance says the breach began with a fake job interview that gave hackers access to employee laptops. The attackers then sent fraudulent withdrawal requests on Oct. 29.
Binance also said the hackers used an internal AI tool to help. Coinbaseās post says AI is changing the threat picture for employees, systems and customers.
The Binance, Bybit and Bitget thefts followed a similar pattern. Attackers went after transaction approval systems instead of stealing private keys directly.
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.
Binance co-founder Changpeng āCZā Zhao said crypto firms need AI-based defenses and an industry alliance. He wants stolen funds frozen faster.
Binance said Wednesday it has replenished about 98% of the affected assets. It is buying the rest through market and over-the-counter channels, which takes longer because of lower liquidity.
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.
