Binance said it has, at its own expense, restored around 95% of assets after the security incident at the end of October. “Binance’s position remains unchanged: the company will bear the financial consequences of the incident, not pass them on to users. The backing of the portion of assets that has already been restored can now be independently verified by users,” the statement said.
Which assets are fully backed
Ten major crypto assets — BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC — are fully backed by reserves at least in a ratio of 1:1. The company said these assets are already fully covered by reserves.
Binance emphasised that the restitution of these assets is being made at the company’s expense, not at users’ expense. Users can independently verify the backing of the restored portion of assets.
Access to Proof of Reserves verification
Binance has completed creating a full zero-knowledge proof for the updated Proof of Reserves snapshot as of 31 October. Verification is available via the official Binance Proof of Reserves service.
The company urged users to use the service for independent verification of reserve data. Cryptocurrencies are highly volatile.
Timeline of the incident and losses
On the evening of 29 October, unusual activity was recorded on blockchains: from Binance wallets used to process transactions a large-scale movement of cryptoassets began. Funds were withdrawn through ten networks: Ethereum, Bitcoin, Tron, XRP Ledger, Solana, Arbitrum, Avalanche, Optimism, Base and Polygon.
The largest portion of the stolen assets was ether (ETH) — about $3.8 billion; roughly $1.47 billion in bitcoins (BTC) was withdrawn from wallets via the Bitcoin network; and around $628 million in USDT and TRX was moved via Tron. On 30 October Binance confirmed that as a result of the attack, cryptocurrencies worth about $6.3 billion were withdrawn from its hot wallets.
The remaining approximately 5% of assets consists of less liquid tokens, the recovery of which will take more time. Binance is continuing to work with industry partners and is gradually restoring withdrawals across additional networks and assets.
