Binance, currently the largest cryptocurrency exchange by trading volume, announced the completion of a major upgrade to its security and transparency systems following a significant cyberattack at the end of last month.
Major upgrade to Proof of Reserves system
In a recent statement, Binance unveiled a new zero-knowledge proof system for its Proof of Reserves (PoR). With this enhancement, users can independently verify that Binance maintains enough assets to cover all customer account balances on a one-to-one basis, reinforcing its commitment to transparency after the security breach.
Zero-knowledge proofs are cryptographic methods that enable one party to prove to another that a specific statement is true, without revealing any additional information apart from the fact itself.
Mini dictionary: Zero-knowledge proof, a technique used in cryptography allowing a prover to demonstrate knowledge of certain information without revealing the information itself, which helps enhance privacy and security in blockchain systems.
To further strengthen user trust, Binance published snapshots that display its reserves consistently exceeding user net balances across six major cryptocurrencies: Bitcoin, Ethereum, Tether, BNB, Solana, and USDC.
Binance stated in the announcement that, “With this new zero-knowledge proof, every user can independently verify that their balances are fully collateralized, ensuring greater trust and security for all our customers.”
Full coverage of affected cryptocurrencies and improved reserve ratios
Binance detailed that all assets impacted by the recent attack are now included under the enhanced Proof of Reserves coverage, assuring users that their funds remain fully backed and accessible. The exchange is continuing to process withdrawals in batches, with the final stages set for completion next week.
The exchange revealed that its current Bitcoin reserves stand at 100.05%, holding approximately 688,283 BTC compared to user balances of 687,912 BTC. Ethereum reserves are maintained at 100.02%, while BNB and USDC collateralization ratios are 100.39% and 100.07% respectively.
| Cryptocurrency | Reserve Ratio | User Balances | Reserves Held |
|---|---|---|---|
| Bitcoin (BTC) | 100.05% | 687,912 BTC | 688,283 BTC |
| Ethereum (ETH) | 100.02% | Not disclosed | Not disclosed |
| BNB | 100.39% | Not disclosed | Not disclosed |
| USDC | 100.07% | Not disclosed | Not disclosed |
| USDT | 104.34% | Not disclosed | Not disclosed |
| Solana (SOL) | 105.86% | Not disclosed | Not disclosed |
Additionally, Binance reported holding 104.34% of the required reserves for Tether (USDT) and 105.86% for Solana (SOL), further showing that the exchange maintains more assets than are owed to its users in these tokens.
The platform clarified that these Proof of Reserves calculations cover only assets held on behalf of customers and do not include Binance’s corporate holdings, which are managed separately from user funds.
According to Binance’s team, the Proof of Reserves ensures each customer’s assets are 1:1 backed, with transparency reports enabling users to confirm collateralization at all times.
Ongoing efforts toward security and user confidence
Since the security incident, Binance has made ongoing efforts to replenish affected assets, restore withdrawal functionality, and strengthen its security protocols. The company continues to emphasize transparency in its asset management, aiming to regain and maintain user trust moving forward.
