Binance's Stolen Wallets Are Proof-of-Reserves Wallets; ETH Reserve Ratio May Drop to 94%

According to TechFlow, on October 30, CoinDesk reported that its review of Binance's own proof-of-reserves data shows the wallets drained in the attack are the proof-of-reserves wallets Binance uses to demonstrate 1:1 backing of user assets. The proof-of-reserves report published by Binance on October 1 included the attacked 'Binance 14' hot wallet, which then held approximately 1.26 billion USDT and 89,475 ETH across 37 assets.

The report said that on October 1, Binance's ETH reserve ratio was exactly 100%, while its USDC reserve ratio was 108.26%. Approximately 204,500 ETH were stolen in this incident, accounting for about 5.6% of its ETH reserves; based on this calculation, the ETH reserve ratio may drop to about 94%. The stolen assets, including ENA, UNI, PEPE and AAVE, account for roughly 7% to 15% of Binance's corresponding holdings, and the reserve ratios for USDC and some altcoins may also fall below 100%.

Binance and co-CEO Yi He said user funds are safe and user balances will be fully honored. CoinDesk noted that Binance's next proof-of-reserves snapshot is scheduled for November 1, which will reveal whether it has replenished the stolen assets. Binance has not yet responded to CoinDesk's request for comment.

Source: TechFlow