Coinbase Executes Internal Wallet Migration

Crypto exchange Coinbase has begun a large-scale transfer of funds into new internal wallets, describing the operation as a scheduled security measure rather than a response to a hack or market shock.

In a weekend announcement, Coinbase said it is shifting Bitcoin, Ether and other crypto assets from long-used, publicly known wallet addresses into fresh addresses still controlled by the exchange. The aim is to cut the risk of leaving large balances in the same onchain locations for extended periods, where they could become attractive targets for attackers.

The company emphasized that no data breach, exploit or regulatory trigger is behind the move, and that all transfers are happening between Coinbase-owned wallets that can be tracked on blockchain explorers and analytics platforms. Customer funds remain fully under Coinbase’s control throughout the process, the exchange said.

However, Coinbase warned users to be alert to scammers who may try to exploit the visibility of these large onchain transactions. The exchange repeated that it will never ask customers for passwords, two-factor authentication codes or request that they move funds “for safety,” a common script used in phishing and impersonation schemes. Any such unsolicited contact should be treated as an attempted scam.

Security specialists say rotating wallets is a widely accepted best practice to reduce the risk of centralized “honeypots” of data and tokens. Hackers increasingly use artificial intelligence tools to scan public information and metadata to identify valuable targets, making static, high-value wallets more vulnerable over time.

Researchers also warn that future quantum computers could eventually break today’s cryptography, enabling “harvest now, decrypt later” attacks using stored public keys. Many experts argue that exchanges and protocols must begin migrating to post-quantum security standards to protect assets against these emerging threats.