US-based crypto trading platform – Coinbase – confirmed that it transferred heavy amounts of the cryptocurrencies, which had been detected recently.
The company representative stated that they plan to expand the list of the assets that are available for the users at the platform. This move is said to require sharp changes in crypto storage patterns taking into account the sums of the assets reaching billions of dollars.
In this situation, the platform has transferred to the modernized storage about $5 billion worth clients' assets (5% of bitcoin, 8% of Ethereum and 25% of Litecoin). The security chief at Coinbase commented that it was spent some four months to complete all preparations for that "relocation". Notably, the company engaged regulators and auditors at every stage of this process to avoid unexpected consequences in the market.
Specifically, Coinbase launched new key generation in October.
"We take the private key and apply a cryptographic technique called Shamir’s Secret Sharing, which is an algorithm that’s used to take a piece of private data and split it into a bunch of chunks you can divide,” explained Coinbase.
Then the keys are distributed among safe locations and further unlocking process requires the participation of few employees which get in touch with each other by phone.