Coinbase says 99% of customer assets sit in cold storage after Binance’s $6.3 billion breach

Coinbase said it keeps more than 99% of customer assets in cold storage and uses distributed private keys, withdrawal limits, and anomaly detection to protect funds from unauthorized transfers.In a blog post published Wednesday, the U.S. crypto exchange said it was not affected by the Binance breach and that customer assets are held 1:1, remain customer property, and are not lent or used without customer authorization.On Oct. 29, the world's largest crypto exchange was exploited to the tune of $6.3 billion. Binance said Tuesday that hackers used a fake job interview and an internal AI tool to assist their breach."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," the blog reads. "The advancement of artificial intelligence capabilities is rapidly changing the security landscape, and, in response, Coinbase will continue to invest in best in class security innovation."Binance cofounder and former CEO Changpeng "CZ" Zhao said crypto companies need AI-based defenses and an industry alliance to share lessons and freeze stolen funds faster. "The only way to fight a monster is to kind of become that monster," he said Tuesday.For its part, Binance said Wednesday it has replenished approximately 98% of the assets affected by its security breach and expanded its Proof of Reserves coverage to 44 tokens, up from 10 previously.The exchange said it is acquiring the remaining 2% of assets through market and over-the-counter channels, with purchases taking longer due to lower liquidity, while the new zero-knowledge proof is expected to take 50 to 60 hours to generate.