Coinbase says more than 99% of customer crypto is held in cold storage, meaning wallets whose keys are not constantly online, Crypto Insiders reported. A smaller share sits in online wallets for daily deposits and withdrawals, sized to expected demand. The statement followed the loss of billions of dollars of crypto from Binance’s online wallets in late October. Coinbase says its own systems and customer balances were not affected.
The company described several controls. Transaction keys are split into several parts so that no single employee or machine can approve a large withdrawal. It also uses withdrawal limits, anomaly checks and emergency stops that can halt transaction signing, backed by a security team that investigates alerts. Coinbase says it holds customer assets one-for-one and does not lend them or use them without customer instruction.
Crypto Insiders pointed out that these are Coinbase’s own claims, not independent proof. Cold storage also carries risks, such as key-management errors, staff deception or problems when funds move between offline and online systems. Customers do not hold the keys to these wallets.
The publication also noted that the link to Coinbase’s own post in the article was malformed, so readers may need to find the original statement on Coinbase’s blog. For users, the practical question is whether proof-of-reserves and audits, rather than blog posts, can confirm how funds are actually held.
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