Binance’s Reserve Page Shows 1.06 Billion More USDT Than Customer Balances After Hack Refill

Binance said on Nov. 12 it has finished covering all assets hit in its Oct. 29 hack, though customers can’t yet check that for themselves.

“Binance has completed coverage of assets impacted in the security incident and we have published a new Proof of Reserves snapshot,” the exchange wrote on X. Binance’s Yi He reposted the statement with a one-word caption: “100%.”

Customers can’t verify that claim on their own yet. Binance said that “once the zero-knowledge proof is generated,” users will be able to confirm their assets are backed “at a minimum of 1:1.” A zero-knowledge proof is a cryptographic check that would let each customer confirm their balance is counted in the reserve total without revealing anyone else’s data.

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Binance’s Proof of Reserves page, as Unchained viewed it on Nov. 13, listed a reserve ratio of 100.05% for bitcoin, 100.02% for ether and 104.34% for USDT, Tether’s dollar-pegged stablecoin. The ratio compares Binance’s onchain wallet balance with customers’ balances, which the page labels net account balances.

For USDT, Binance’s onchain wallet balance was about 1.06 billion tokens higher than those net account balances, by Unchained’s calculation from the page’s figures. That onchain figure includes about 306.7 million USDT held by third-party custodians.

Binance’s refill follows its Oct. 29 hack, in which digital assets Binance valued at about $6.34 billion were involved.

In an earlier update, Binance had confirmed that, for the 10 tokens in its Oct. 31 snapshot, “the affected assets were replenished using Binance’s own funds,” according to its Nov. 2 recovery update. That Nov. 2 post also cited a subsequent update putting the share covered at about 95% of the impacted amount, and said Binance would absorb the loss rather than pass it to users. It came with the zero-knowledge proof for the Oct. 31 snapshot.

Binance’s incident report said about $2.85 billion of the stolen assets had been frozen or intercepted, a figure it called subject to verification.

Binance’s Nov. 12 post did not say when the proof will be ready. In its Nov. 2 update, Binance estimated that the proof for its next snapshot, then planned for Nov. 4, would take about 40 to 50 hours to complete.

Related Listen: Binance Lost $6.3 Billion in 20 Minutes. Can Crypto Stop the Next One?

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