Binance completes reserve proof for 10 tokens after $6.3B hack

Binance has completed its latest zero-knowledge Proof of Reserves verification for ten major cryptocurrencies following the $6.3 billion hack on October 29, allowing users to independently check that their holdings are fully backed.

In a November 2 recovery update, the exchange confirmed that the cryptographic proof for its October 31 reserve snapshot was ready, ahead of its previously estimated November 3 completion date. Binance said the affected assets had been replenished using company resources, with the ten covered tokens backed by reserves of at least 100%.

The assets include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, Solana (SOL), USDC, XRP, USD1, RLUSD, and Zcash (ZEC).

Users holding these cryptocurrencies can now verify their balances through Binance’s Proof of Reserves website without relying solely on the exchange’s published reserve figures.

The announcement follows several days of recovery efforts after the exchange suffered one of the largest cryptocurrency thefts on record.

Binance completes Proof of Reserves verification

Binance took its latest reserve snapshot at 00:00 UTC on October 31, two days after the security breach. The exchange initially published the snapshot while its systems worked on generating the accompanying zero-knowledge proof.

In its October 31 recovery update, Binance estimated that completing the calculations would take approximately 40 to 50 hours because of the computing resources required.

The process has now finished, allowing customers to check whether their individual account balances were included in the snapshot and supported by sufficient reserves.

Binance uses a Merkle Tree system combined with zk-SNARK technology for the verification process.

A Merkle Tree allows users to confirm that their balances were included in the exchange’s published records. The zero-knowledge proof then establishes that the assets covered by the snapshot have reserves of at least 1:1 without disclosing individual account balances.

Customers must log into their Binance accounts and download the open-source verification tool from the exchange’s official Proof of Reserves website to perform the checks on their computers.

Binance said the verifier’s code is publicly available on GitHub and has undergone independent audits, allowing developers to examine how the verification system works.

The exchange plans to take another reserve snapshot on November 4, covering more cryptocurrencies than the current ten-token report. Generating the accompanying proof is expected to require another 40 to 50 hours.

What remains of Binance’s hack recovery?

While the ten major cryptocurrencies are fully backed, Binance has yet to complete the replacement of every token affected by the attack.

Its November 1 recovery announcement confirmed that approximately 95% of the impacted amount had been covered, up from 90% on October 31 and 80% a day earlier.

The outstanding 5% consists of cryptocurrencies outside the ten assets included in the latest reserve verification.

Binance explained that these tokens have relatively limited market liquidity, making it harder to purchase the required quantities quickly. The exchange continues sourcing them through market transactions, over-the-counter arrangements, and industry partners.

As crypto.news previously reported, Binance had set aside more than $6.34 billion to cover the losses and held approximately $5 billion in matching cryptocurrencies by October 30.

Its subsequent replenishment efforts involved the Secure Asset Fund for Users (SAFU), a portion of its Futures Insurance Fund, and corporate treasury resources.

Binance has committed to restoring SAFU to approximately $1 billion. The exchange previously said its remaining futures insurance reserves continued to meet the required coverage levels under its risk management framework.

The company has maintained that customers will not bear the financial losses resulting from the theft.

More Binance withdrawals scheduled to resume

Alongside the completed reserve verification, Binance is preparing another phase of withdrawal restoration for November 3.

The exchange resumed withdrawals in stages on November 1 after temporarily suspending the service while conducting security checks following the attack.

Its first phase covered 15 blockchain networks, including Bitcoin, Ethereum, BNB Smart Chain, Tron, Solana, XRP Ledger, Arbitrum, Base, Optimism, and Avalanche C-Chain.

Supported withdrawals included major cryptocurrencies and stablecoins, although availability depended on the selected asset and network.

Binance said the initial rollout prioritized withdrawal demand recorded during the preceding week, with individual services reopened after operational and security checks.

The next phase will progressively restore additional networks and assets. Specific supported tokens and activation times have not yet been announced.

Users can check the exchange’s withdrawal page or network status page for availability as services return.

Recovery follows October 29 security breach

The latest developments follow the October 29 Binance hack, which affected approximately $6.3 billion in cryptocurrency across multiple blockchain networks.

Binance’s preliminary investigation identified a compromised DevOps engineer’s laptop as a possible entry point, with attackers suspected of accessing internal infrastructure to authorize unauthorized withdrawals.

The exchange previously said it found no evidence that wallet private keys had been exposed.

Blockchain investigators traced transfers across several networks, while industry partners helped freeze approximately $3 billion in affected assets.

Binance has been working with law enforcement and blockchain security firms to trace the stolen funds. The exchange has said it will publish a detailed post-incident report once its investigation is complete.