Coinbase Seeks To Reassure Investors After Binance Hack

Cryptocurrency exchange Coinbase Global (NASDAQ: $COIN) says that 99% of its customers’ digital assets are safe in cold storage.

The exchange added that it uses distributed private keys, withdrawal limits, and constant surveillance and anomaly detection to protect funds from hacks and unauthorized transfers.

The comments, made in a blog post, come as Coinbase seeks to reassure investors after a record $6.3 billion U.S. theft at rival crypto exchange Binance. 

Coinbase added that its customer assets are held 1:1, remain each customer’s individual property, and are not lent out or used in anyway without express customer authorization.

On Oct. 29, Binance, the world's largest crypto exchange, had $6.3 billion U.S. worth of Bitcoin (CRYPTO: $BTC) stolen in the biggest hack ever. 

Since then, nearly $12 billion U.S. or crypto and cash has been pulled from Binance by nervous investors. 

The hack and theft at Binance have rattled investors and raised concerns about growing threats to digital assets from artificial intelligence (A.I.) and quantum computers. 

“Our responsibility is to keep improving safeguards and continuously monitor for threats so Coinbase can be the best place for customers to grow, use and move their money,” reads the company’s blog post. 

The comments from Coinbase also come after Binance cofounder Changpeng "CZ" Zhao said crypto companies need an industry alliance to share lessons and freeze stolen funds faster.

Binance has pledged to make investors whole and over all losses from the hack of its trading platform. 

COIN stock has fallen 53% over the past 12 months to trade at $151.50 U.S. per share.