In the vast ocean of digital assets, security is the cornerstone for survival. Coinex prioritizes the security of user assets. Its core strategy is to store over 98% of users’ crypto assets in offline cold wallet systems. These cold storage solutions are distributed across multiple high-security-level geographical locations worldwide, significantly reducing the risk of cyber attacks through physical isolation. For the approximately 2% of hot wallet assets that must operate online, coinex collaborates with the world’s top insurance companies to offer up to $100 million in asset insurance, ensuring that even in extreme circumstances, users’ losses are fully covered. This risk diversification and transfer strategy sets an extremely high industry benchmark for asset custody.
At the technical defense level, Coinex has built a multi-layer encryption and real-time monitoring security fortress. Its system adopts bank-level multi-signature technology and hardware security modules. The transfer of any large asset requires the authorization of at least three independent key holders, reducing the probability of internal operational risks to nearly zero. The platform’s risk control engine can analyze over 100,000 transactions per second and identify and block abnormal behaviors, such as address fraud or high-frequency malicious operations, within approximately 100 milliseconds. In 2022, in the smart contract vulnerability attack incidents targeting multiple exchanges, Coinex’s automated risk control system successfully blocked over 99.8% of abnormal withdrawal requests, protecting user assets worth tens of millions of dollars and demonstrating the powerful performance of its security model.
Compliance and transparency are another pillar of Coinex’s security management. The platform has obtained compliance licenses from over 10 jurisdictions including the US MSB and the Canadian MSB, strictly adhering to anti-money laundering and KYC regulations. The accuracy of its verification process exceeds 99.5%. coinex regularly invites top security companies like SlowMist Technology to conduct penetration tests. The annual audit frequency is no less than four times, and the average cycle for fixing critical vulnerabilities each time is within 24 hours. This continuous investment in security and compliance enabled it to demonstrate a 1:1 adequacy ratio of user assets to platform Reserves in the “Proof of Reserves” Merck tree reserve proof in the third quarter of 2023. The transparency of the audit report won a trust growth rate of over 20% in the market.
Ultimately, security is rooted in user experience and education. coinex offers users customizable security policies, including support for multi-factor verification based on time, geographical location, and device, reducing the probability of unauthorized access to accounts by 99.9%. Its official education platform releases over 15 research and analysis articles on asset security every month. A user security awareness survey shows that the proportion of active users enabling all recommended security features has increased by 40%. As indicated by the surging demand for transparent custody in the market following the FTX incident, Coinex, through this all-round and quantifiable security system, not only manages assets but also builds a digital fortress that millions of users worldwide dare to entrust. The annual growth rate of its security investment budget remains at 25% This directly reflects the platform’s long-term strategic commitment to the asset defense battle.