Binance said Monday that users can now verify its holdings for ten cryptocurrencies after the exchange completed a new zero-knowledge proof covering its October 31 reserves snapshot, the latest step in its response to an October 29 cyberattack that drained more than $6 billion from its wallets. Zero-knowledge proofs are a cryptographic method that lets an exchange demonstrate its reserves cover customer balances without exposing individual account data, which is the property the verification process relies on.

Ten Tokens Now Verifiable

The proof covers BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC. According to Binance, each token now has at least one reserve unit for every unit customers hold, meeting a 1:1 backing threshold across the ten assets.

The reserves snapshot underlying the proof was taken on October 31. Users can log in to the exchange and download a verification tool to confirm that their balances appear in the records without making account details public. Binance announced the completion of the update in a post on X.

A further snapshot is scheduled for Wednesday, November 4, and will extend coverage to more tokens. Co-CEO Yi He said the updated proof could take 40 to 50 hours to produce after the snapshot is captured, meaning the expanded report would trail the snapshot by roughly two days.

Exchange Replaces 95% of Affected Funds

Binance said it has replaced approximately 95% of the assets affected by the hack using company money. The exchange has pledged $6.34 billion toward recovery and said customers would not bear the losses from the incident.

The remaining 5% consists of tokens that trade less frequently. Binance said it is acquiring those assets through market transactions and working with partners to obtain enough tokens to fully cover customer balances. The exchange drew on its corporate treasury, customer protection fund and futures insurance fund to cover the losses, and has not announced a completion date for the purchase of the remaining tokens.

Withdrawal services are also being restored. The first phase began Sunday after security reviews, with services returning across 15 networks, and Binance plans to bring withdrawals back for more assets and networks starting Tuesday.

Hack Investigation and Exchange Outflows

Investigators have linked the October 29 theft to North Korea's TraderTraitor group, and the FBI has also attributed the attack to the group. Security researchers said the attackers gained access to internal systems used to approve wallet transactions.

Binance said industry partners have frozen about $3 billion in assets linked to the theft. Those frozen funds are separate from the customer assets Binance has already replaced, and researchers continue to track money moved through different networks and services as the exchange investigates the breach.

On Sunday, analyst SomaXBT reported transfers of $242 million through Tron tied to the stolen funds. The findings describe movements of suspected proceeds, not money recovered by Binance or returned to customers.

DeFiLlama data showed Binance's 24-hour net outflows easing to roughly $3.29 billion from an earlier peak near $7 billion. The tracker estimated $127.78 billion in assets across wallets linked to the exchange. Net outflows measure the difference between assets leaving and arriving at an exchange over a day, so the lower figure indicates the gap has narrowed, not necessarily that deposits have returned.

Source: CoinCentral