Gate has launched the Proof of Security framework, or PoSEC, which assesses whether an exchange could fully compensate customers if all its hot wallets were emptied. The first snapshot, taken on November 4, 2026, at 00:00 UTC, reported a cold storage coverage ratio of 104.58%, with 88.26% of user assets held offline. The exchange manages more than $10 billion in user assets and is publishing the methodology so competitors can adopt a similar standard. The initiative comes one week after attackers stole approximately $6.34 billion from Binance hot wallets in an attack attributed to a group linked to North Korea. PoSEC does not verify internal controls, key management or protection against insiders, while greater use of cold storage can slow withdrawals.
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