Crypto Exchanges Reveal Cold and Hot Wallet Ratios Following Binance Hot Wallet Hack

Crypto exchange Gate introduced a new 'Proof of Security' (PoSEC) framework on Thursday. The company revealed that 88.26% of its total assets are held in cold wallets, while 11.74% remain in hot wallets. Gate asserts that its cold storage holdings could cover 104.58% of customer assets even if its hot wallets were completely compromised.

Gate emphasized that making the allocation between cold and hot wallets public through PoSEC enhances transparency regarding asset storage and the platform's capacity to absorb potential losses under extreme conditions. The reported figures are currently undergoing independent verification by a third-party audit firm.

The recent attack on Binance's hot wallets resulted in a theft of approximately $6.36 billion, most of which was stolen within a roughly 20-minute period, according to TRM Labs. Binance CEO Richard Teng stated that the majority of user funds are stored in cold wallets but did not disclose exact percentages.

Other exchanges have also been prompt in sharing their cold storage percentages this week, aiming to boost user confidence amid the fallout from Binance's security breach.

Coinbase announced via a blog post on Wednesday that over 99% of customer assets are secured in offline cold storage. The company also noted a continuous process of shifting excess assets into cold wallets to minimize risk.

In response to the Binance hot wallet incident, Coinbase recognized that customers have valid concerns regarding asset protection and outlined its commitment to secure custody practices to prevent a similar event.

Upbit, South Korea's leading cryptocurrency exchange, confirmed on Tuesday that 99.17% of its assets are held in cold wallets as of September 2026, with only 0.83% in hot wallets. This data has been reported to the Financial Supervisory Service.

According to a representative from Upbit's parent company Dunamu, this is the highest cold storage ratio among the five largest KRW-based crypto exchanges in South Korea and well above the regulatory requirement of 80%. The company aims to reduce assets in hot wallets to under 1% of total customer digital assets.

Other major South Korean exchanges have reported lower cold wallet proportions: Bithumb at 94.76%, Coinone at 85%, Digital X (formerly Korbit) at 82.79%, and GOPAX at 80.54%, based on figures from the Financial Supervisory Service as of late September.

OKX’s security overview, updated on 18 September 2026, states that more than 95% of client assets are kept in cold wallets with less than 5% in hot wallets, reflecting their security posture.

It is important to note that the reported cold storage ratios can vary due to differences in reporting periods and the methods exchanges use to calculate these percentages relative to their assets.

However, focusing solely on cold storage ratios does not provide a complete picture of an exchange’s security posture.

Cold wallets remain susceptible to risks such as compromised signing mechanisms, weak access controls, or internal fraud where employees authorize malicious transactions.

In August 2025, Hong Kong's Securities and Futures Commission issued a circular cautioning that vulnerabilities in wallet infrastructure can threaten the security of both hot and cold wallets, highlighting the need for comprehensive safeguards.

Exchanges' disclosures of cold and hot wallet asset divisions help restore user confidence and highlight the complexity of safeguarding crypto assets beyond just cold storage percentages. This information underscores the ongoing industry efforts to enhance transparency and security following significant breaches like Binance’s hot wallet attack.

The importance lies in understanding that while high cold storage ratios reduce some risks, comprehensive security requires addressing vulnerabilities in wallet access and transaction approvals to prevent both external hacks and internal compromises.

Such disclosures push the industry toward greater accountability and help users gauge the robustness of their asset custodians amid evolving cyber threats.