Binance Co-CEO: Full Proof of Reserves to be released no later than Monday, with withdrawals targeted to resume within 40 hours

According to TechFlow, on October 30, Binance Co-CEO Richard Teng said in a post that Binance has reserved more than 6.34 billion USD in company funds to cover the stolen assets, with 5 billion USD already held in affected tokens, including USDC, USDT, BTC, ETH, and BNB. The remainder is being purchased through market and OTC channels. He again emphasized that the affected assets were in Binance's own hot wallets, no customer funds were used, and the vast majority of user assets are stored in cold wallets.

Regarding the attack details, Teng said the attack was not carried out by a single person and the method was complex. Preliminary investigation pointed to a compromised laptop, while subsequent investigation found additional entry points. The attackers used a self-destruct mechanism, destroying tools and traces during the attack, which increased the difficulty of tracking. The attackers also exploited the known EIP-7702 protocol to obtain on-chain execution authorization for the hot wallets, and the authorization did not go through Binance's normal approval controls. As a result, Binance suspended withdrawal services to investigate, rebuild, and retest the entire infrastructure.

As for next steps, Binance is rebuilding its withdrawal service and will only resume it after passing rigorous testing, targeting restoration of withdrawals before the Sunday deadline, within approximately 40 hours. Binance is also conducting a comprehensive security review of endpoints, cloud platforms, key management, and signing processes. Binance plans to release the full Proof of Reserves (PoR) report no later than Monday and hopes to provide preliminary results beforehand. In addition, Binance is working with law enforcement, blockchain intelligence firms, token issuers, and other exchanges to trace, freeze, and recover the stolen funds.

Source: TechFlow