CertiK urges crypto exchanges to cap hot wallet holdings

CertiK has recommended that crypto exchanges impose hard dollar-denominated caps on hot wallet holdings to limit losses from breaches. The security firm argues that capping the share of assets held in internet-connected wallets would reduce exposure, though it cautioned that the change could slow transaction processing and degrade user experience. The recommendation follows a series of high-profile exchange exploits in which compromised hot wallets drained funds. CertiK did not specify a universal cap level, leaving exchanges to size limits against their own liquidity and withdrawal needs. Watch for major venues to disclose hot versus cold wallet ratios and any resulting changes in withdrawal speeds.