COINDESK · 2026-11-05 14:43 UTC

Gate CEO says crypto exchanges must prove they can survive a hack like Binance's

Gate CEO Lin Han introduced Proof of Security (PoSEC), a standard measuring whether exchanges hold enough assets in cold storage to cover customer funds if hot wallets are hacked. PoSEC goes beyond existing Proof of Reserves by verifying assets are stored offline and protected; Gate reports 104.58% cold storage coverage with $8.69 billion in total reserves. The standard comes after Binance's recent $6.34 billion hack, the largest crypto heist in history, which exposed limitations of existing safeguards despite Binance having published proof of reserves.

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