CertiK urges crypto exchanges to cap hot wallet holdings

After the record Binance hack, the security firm says cold-storage percentages alone don't tell users how safe their funds are Crypto exchanges have spent the past few weeks publishing their cold-storage ratios, hoping big percentages will calm nervous customers. CertiK thinks the industry is grading itself on the wrong test. The blockchain security firm says exchanges should set hard dollar limits on how much they keep in hot wallets, instead of leaning on cold-storage ratios as a stand-in for security. The advice lands after the Binance hack, which went straight for the exchange’s hot wallets. A hot wallet is connected to the internet so an exchange can process withdrawals quickly, while a cold wallet sits offline, harder to reach and harder to steal from. Exchanges need that cash drawer.

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