Gate introduces Proof of Security standard for crypto exchanges

Gate's new framework asks whether an exchange can lose its entire hot wallet and still make every customer whole Most crypto exchanges can show you they hold your money. Gate wants to show it can lose a big chunk of that money and still pay you back. The exchange has rolled out what it calls a Proof of Security framework, or PoSEC. It arrives one week after Binance suffered what has been described as the largest crypto theft on record. The timing is not subtle. What Proof of Security actually measures Gate founder and CEO Lin Han’s pitch is simple. An exchange should survive a total wipeout of its online wallets without customers taking a hit. Think of it like a bank branch. Proof of Reserves confirms the vault holds enough cash for every depositor. Proof of Security asks a harder question: if robbers cleaned out every teller drawer, would the vault alone still cover everyone? In crypto terms, the “teller drawers” are hot wallets. These are internet-connected wallets that let exchanges process withdrawals quickly. The “vault” is cold storage, meaning keys kept offline and far harder for attackers to reach. Gate launched PoSEC on November 5, 2026. The company bills it as the first f...