Coinbase says it was not affected by the $6.3 billion Binance breach and described how it protects customer funds. Binance, meanwhile, says it has replenished approximately 98% of the affected assets.
Coinbase keeps more than 99% of customer assets in cold storage, the exchange said after Binance's breach. It also uses distributed private keys, withdrawal limits and anomaly detection to guard against unauthorized transfers.
Coinbase says customer assets are held 1:1
In a blog post published Wednesday, the U.S. exchange said it was not affected by the Binance breach. It added that customer assets are held 1:1, remain customer property and are not lent or used without customer authorization.
Coinbase also pointed to artificial intelligence. According to the Coinbase blog: "Coinbase will continue to invest in best in class security innovation." The post says the technology is rapidly changing the security landscape.
How the Binance breach unfolded
On Oct. 29, the world's largest crypto exchange was exploited for $6.3 billion. Binance said Tuesday that hackers used a fake job interview and an internal AI tool to assist the breach.
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.
Binance replenishes affected assets
Binance said Wednesday it has replenished approximately 98% of the assets affected by the breach. The exchange also expanded its coverage to 44 tokens, up from 10 previously. That covers its Proof of Reserves tracking.
The exchange said it is acquiring the remaining 2% through market and over-the-counter channels, and purchases are taking longer due to lower liquidity. The new zero-knowledge proof is expected to take 50 to 60 hours to generate.
Source: The Block
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