Binance Releases Post-Hack Reserve Proof for 10 Tokens

Binance opens ten-token reserve verification

In its fifth recovery update, Binance said customers can verify at least one-for-one backing for the covered tokens at October 31, 00:00 UTC. Publication on November 2 does not make those balances a live reading.

The exchange’s reserve portal explains the account-level check. A Merkle tree combines account records into a shared cryptographic summary, while allowing a customer to check that their own record was included without exposing everybody else’s balances.

A second mechanism, called a zero-knowledge proof, checks constraints on the reported balance calculation without publishing individual holdings. Binance’s documentation says these include account inclusion, nonnegative total net balances and valid changes to the shared summary.

These mechanisms address the integrity of specified calculations and records. They do not turn a historical record into continuous observation of an exchange’s assets.

The portal tells customers to select a verification date and review their record ID, covered assets and balances for that particular assessment. A successful inclusion check therefore concerns the selected record, not every later deposit or withdrawal.

Daily Crypto Briefs reviewed the public announcement and documentation, but did not run an authenticated customer’s verification or independently reproduce the complete proof. Availability is attributed to Binance; this article is not an independent certification of its reserves.

Binance hack losses remain separate from backing

The dedicated loss-impact review, checked at 17:08 UTC November 2, found confirmed theft evidence rather than only a reported vulnerability. Elliptic’s final November 1, 08:00 UTC update estimates $6.43 billion stolen and verifies $2.85 billion frozen or seized.

Elliptic identifies $3.80 billion taken on Ethereum across 186 tokens and 18,270 stolen bitcoin. Its estimate covers eleven blockchains. Those figures describe assets removed from exchange wallets, not a count of individually compromised customer accounts.

TRM Labs’ earlier investigation estimated $6.36 billion across ten chains, based on observations through October 30 at 00:30 UTC. Different coverage and valuation cutoffs mean the estimates should not be added together.

TRM described ordinary signed transfers on multiple networks and an Ethereum account delegation used to sweep assets. It also identified a second wave around 23:05 UTC October 29 affecting Avalanche and Polygon. That was part of the original attack, not evidence of another breach on Monday.

The reviewed sources did not establish a verified unique customer-victim count. Blockchain addresses, token counts and transfer counts cannot substitute for that figure.

Binance says it has covered about 95% of the impacted amount, with less-liquid tokens still being acquired. That is replacement progress, not a claim that investigators recovered 95% from the attackers.

Likewise, frozen funds cannot automatically be counted as returned funds. The distinction remains central to assessing the financial consequences of the attack, even when an exchange restores the backing of customer balances.

Reserve proof leaves audit and withdrawal questions

The PCAOB Office of the Investor Advocate’s advisory explains that reserve reports are not financial-statement audits. Its general guidance concerns third-party reserve engagements, rather than an assessment of this Binance proof.

The advisory highlights questions about liabilities, ownership rights, borrowed assets and internal controls that reserve exercises may leave unanswered. A cryptographic calculation and a comprehensive examination of a company’s financial condition have different scopes.

A snapshot also cannot establish whether assets subsequently moved or whether a particular withdrawal route is currently available. Our report on withdrawals after reopening examined customer flows and inconsistent external wallet coverage, a separate question from inclusion in this dated proof.

That separation gives the new disclosure a specific use: customers can examine the published record while continuing to assess access, security and subsequent disclosures independently.

Alternative.me’s Fear & Greed Index stood at 37, or Fear, compared with 34 previously. The broad sentiment gauge does not measure Binance’s solvency or customer confidence specifically.

Binance plans another snapshot covering more tokens on November 4, followed by an estimated 40 to 50 hours of proof generation, and a further withdrawal phase on November 3. Those remain plans; completed acquisitions, actual transfer access and the next published proof are the developments still to verify.