Binance Publishes Zero-Knowledge Proof of Reserves for 10 Tokens After $6.3B Exploit

AI disclosure: drafted by Basis Desk's AI newsroom and machine-checked against the primary sources listed below — how we use AI. Originally published on Basis Desk.

The cryptographic audit covers Bitcoin, Ethereum, and eight other assets, with Binance pledging over $6.34 billion to cover all user balances.

Key points

• Binance issued zero-knowledge reserve proofs confirming at least 1:1 backing for 10 core assets following an Oct. 31 snapshot.
• The exchange committed more than $6.34 billion from corporate funds and its SAFU reserve to fully cover balances after an Oct. 29 heist.
• Roughly $3 billion of the stolen capital was frozen onchain by partners, with the next token reserve snapshot scheduled for Nov. 4.

Binance completed a zero-knowledge reserve audit verifying that user assets across 10 tokens are backed at least 1:1, the exchange announced on Nov. 2 [1]. The snapshot was taken at 00:00 UTC on Oct. 31, two days after hackers drained more than $6.3 billion from its hot wallets [1]. The initial verification covers $BNB, $BTC, $ETH, $RLUSD, $SOL, $USD1, $USDC, $USDT, $XRP, and $ZEC [1].

To demonstrate solvency without revealing individual customer account balances, the exchange deployed a system combining Merkle trees with zk-SNARK cryptographic proofs [1]. Users can verify their holdings by running Binance's open-source desktop verification tool locally against public GitHub code [1]. Binance stated that the tool has completed an independent security audit [1]. Binance co-CEO Yi He noted that generating the zk-proofs requires between 40 and 50 hours per cycle depending on the volume of assets assessed [1].

Recovery Efforts and Phased Rollout

The reserve confirmation follows the Oct. 29 security incident where attackers looted hot wallets across multiple blockchains within roughly 20 minutes [1]. The FBI attributes the exploit to the North Korea-backed group TraderTraitor, according to TRM Labs [1]. Investigators, including security analysts from Pangolin Intelligence and Opsek, pointed toward a compromise of internal transaction-signing infrastructure rather than stolen master private keys [1]. External ecosystem partners—including Tether, Circle, and the Arbitrum Security Council—helped freeze roughly $3 billion in stolen funds onchain [1].

Binance committed more than $6.34 billion from its SAFU emergency fund and corporate reserves to reimburse all affected balances [1]. The exchange said coverage reached 90% by Oct. 31 and 95% by Nov. 1, with the remaining 5% held in less liquid tokens that require longer execution windows to acquire on open markets [1]. After pausing withdrawals immediately following the breach, Binance began a phased resumption on Nov. 1, scheduling the next phase of network reopenings for Nov. 3 and another reserve snapshot on Nov. 4 [1]. At the time of writing, $BTC traded at $76,971, down 1.2% over 24 hours.

Sources

1. Binance Publishes Zero-Knowledge Reserve Proof for BTC, ETH and 8 Other Tokens After Hack — Primary document (discovered)

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