Binance completes new proof of reserves as it restores assets after $6 billion hack

Binance has completed a new proof of reserves snapshot, letting users of the crypto exchange independently check that their balances are fully backed. The update is part of the company's ongoing recovery from what onchain investigators describe as the largest crypto exploit on record, in which more than $6 billion in funds were moved.

Key points from the recovery update

• Binance completed a new zero-knowledge proof of reserves covering 10 assets: BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC.
• The exchange says it replenished about 95% of the assets affected by last week's hack with its own funds.
• The remaining 5% is in less-liquid tokens that Binance is still working to acquire.
• Another reserves snapshot is planned for Wednesday, with withdrawals for additional networks and assets expected to progressively resume starting Tuesday.

A proof of reserves is a way for an exchange to show users that the money held on its platform matches customer balances. A zero-knowledge proof is a cryptographic method that allows this check without revealing personal data.

What Binance's co-CEOs said

Co-CEO Richard Teng wrote on X that the latest proof of reserves verification gives users another way to independently check that their assets are backed. He added that there is still work to do and that Binance will continue to communicate its progress openly.

Co-founder and co-CEO Yi He explained the technical timeline on X. She said computation is required to turn a snapshot into an updated full zero-knowledge proof, and that generation time depends on the number of tokens. She estimated the process takes about 40 to 50 hours after the snapshot is completed.

The record exploit behind the recovery

Onchain investigators say North Korean attackers exploited Binance's internal systems and wallet-signing mechanisms to move more than $6 billion in funds across multiple blockchains. Investigator SomaXBT reported on Sunday that North Korean hackers laundered about $242 million of the stolen funds on Tron, a blockchain network.

StoneX analysts wrote Monday in a note to clients that the response from token issuers, decentralized finance protocols and Binance itself was faster and better coordinated than anything the industry had previously managed. The analysts said they regard this as a point of validation for several business models they cover, with regulated custody most of all.

What is confirmed

Binance's own update confirms the completion of the proof of reserves snapshot for the 10 listed assets, the roughly 95% replenishment of affected assets using its own funds, the Wednesday snapshot plan, and the Tuesday start for progressively restoring withdrawals on additional networks and assets.

What is still unclear

The exact timing of the zero-knowledge proof generation is an estimate. Yi He's stated 40 to 50 hour window depends on the number of tokens and is not a fixed schedule. Details on when the remaining 5% of less-liquid tokens will be fully replenished were not provided. Claims about the attackers and the laundering of funds come from onchain investigators, not from Binance itself.

Why this matters for users

For Binance customers, the proof of reserves offers a way to verify their balances are backed 1:1 without relying solely on the exchange's word. The announced timeline also signals when access to funds on additional networks and assets may return, following last week's disruption.

What happens next

Binance plans another reserves snapshot on Wednesday. Withdrawals for additional networks and assets are expected to begin progressively restoring on Tuesday, with the updated zero-knowledge proof estimated to be ready 40 to 50 hours after the snapshot completes.

Sources

• The Block