- Binance has released cryptographic reserve verification for 10 tokens. The data shows the status as of October 31, before the resumption of payments.
- According to the exchange, reserves cover at least 100% of customer balances in these cryptocurrencies. The proof does not include all of the platform’s assets.
- Binance declares that it will make up approximately 95% of the missing items after the theft. The next record of reserves is scheduled for November 4, and the preparation of the proof is expected to take 40-50 hours.
How do I check if my balance is included in my report?
Binance uses Merkle tree and zk-SNARK technique. They allow you to check whether a specific account’s balance has been included in the statement, without disclosing other users’ balances. The code for the verification tool is publicly available on GitHub.
The report describes the situation as of October 31 at 00:00 UTC, two days after the attack and before resumption of payments on November 1. Binance has scheduled the next such recording, called a snapshot, for November 4. It is intended to cover more cryptocurrencies. Only later will a cryptographic proof be created, which, according to the exchange, requires 40-50 hours of calculations to generate.
Ten tokens are part of the exchange’s assets
Binance’s announcement confirms at least 1:1 coverage for the ten cryptocurrencies, but does not provide detailed ratios or reserve amounts for each of them. This does not mean that such data is not included in the report itself. According to Binance, the validator code has been independently audited, but the announcement does not mention an auditing firm.
Many smaller coins held by customers remain outside the proof. Binance declares that it has made up approximately 95% of the gaps after the attack using its own funds. The remaining approximately 5% falls on less liquid cryptocurrencies outside the verified top ten. The exchange obtains them on the market, in direct transactions outside exchanges (OTC) and through partners. Replenishing reserves does not mean recovering stolen coins from attackers.
Falling asset values aren’t just about withdrawals
According to DefiLlama data cited by bitcoin.com, the value of Binance’s tracked assets dropped from approximately $145 billion. On October 29, to approximately USD 128 billion. early morning on November 2. This change also includes falling cryptocurrency prices and the theft of approximately $6.3 billion. Therefore, the entire difference cannot be treated as money paid by customers.
Binance said separately that in about nine and a half hours after withdrawals resumed, net outflows, i.e. withdrawals minus deposits, amounted to about 2.1% of its assets. This indicator covers a different period and calculation basis than the DefiLlama summary.
What does this mean to you
As instructed by Binance on the exchange’s website, select Wallet, then Verification and the report date. There you will find the Record ID and Merkle Leaf needed for self-verification. To fully check, you also need to download the verification tool from the Proof of Reserves website to your computer. Check your balance as of the report date, not the current amount in your account. Balance confirmation does not include cryptocurrencies omitted from the report or subsequent reserve changes.
Binance announced the next phase of withdrawals
There are no results yet from the snapshot scheduled for November 4. It is supposed to show reserves after the first days of payouts and cover more cryptocurrencies. The proof from October 31 does not take into account these changes.
