In response to last month’s significant cybersecurity breach, Binance has amplified its commitment to security and transparency. On November 14, the cryptocurrency exchange announced the implementation of a new zero-knowledge proof system for its proof-of-reserves. This enhancement aims to allow users to independently verify that Binance’s reserves fully back all account balances, increasing trust and accountability.
Comprehensive Reserve Data for Major Cryptocurrencies
To demonstrate its commitment, Binance released snapshots of reserves covering six major cryptocurrencies: Bitcoin, Ethereum, Tether, BNB, Solana, and USDC. This move is part of the company’s broader strategy to reassure users and restore confidence following the security incident, indicating that balances are maintained above net user accounts.
Recognized as one of the largest cryptocurrency exchanges globally by trading volume, Binance’s recent declarations underscore key steps in bolstering user trust post-breach. The reserve data reveals that Binance holds reserves exceeding 100% of net user balances for all included assets.
Bitcoin and Other Assets’ Reserve Ratios Surpass 100%
According to the latest data shared by Binance, Bitcoin’s reserve ratio stands at 100.05%, indicating that the reserve of nearly 688,283 BTC surpasses the net user balance of 687,912 BTC.
Further, the Ethereum reserve ratio is reported at 100.02%. For BNB, the ratio is 100.39%, and for USDC, it is 100.07%. Binance affirmed that all assets under this coverage hold reserves above client obligations.
Binance stated that the new proof-of-reserves update empowers users to independently confirm that their assets are fully backed one-to-one.
Withdrawal Processes Resume Gradually
The exchange indicated that the withdrawal process is progressively being reinstated, with the final stage anticipated to be completed next week. During this period, additional efforts are being made to restore the affected assets and tighten security measures.
USDT and Solana reserves were reported at even higher ratios, with USDT at 104.34% and Solana at 105.86%, signifying that Binance holds more assets than required to meet user obligations.
The company emphasized that the proof-of-reserves coverage includes only client-held assets, not the entire corporate balance sheet, and these funds are held in full.
It is noteworthy that Binance’s proof-of-reserves system specifically pertains to assets held in custody for users, rather than the exchange’s complete corporate holdings. This transparency measure aims directly at ensuring the security and liquidity of customer funds.
