Crypto exchanges need hard dollar caps on hot wallets, CertiK says

Crypto exchanges should impose hard dollar limits on their hot-wallet holdings rather than relying solely on cold-storage ratios to measure security, according to cybersecurity firm CertiK.

The recommendation came as several crypto exchanges recently disclosed how much they held in cold wallets, seeking to reassure customers after the record Binance hack that targeted its hot wallets. Crypto exchange Gate reported that 88.26% of its total assets were in cold storage, while Coinbase said it keeps more than 99% of customer assets offline.

“Cold storage is a useful measure of online exposure, but it is not a standalone security score,” CertiK’s research team told Cointelegraph.