Binance Stolen Wallet Classified as Proof of Reserve Wallet, ETH Reserve Ratio May Drop to 94%

TechFlow reported that on October 30, according to CoinDesk, a review of Binance's own proof of reserves data revealed that the wallet emptied in the attack was the exact reserve wallet Binance uses to demonstrate 1:1 full backing of user assets. The reserve report published by Binance on October 1 included the hacked “Binance 14” hot wallet, which at the time held approximately 1.26 billion USDT and 89,475 ETH, covering a total of 37 assets.

The report noted that on October 1, Binance's ETH reserve ratio stood at exactly 100%, while the USDC reserve ratio was 108.26%. Approximately 204,500 ETH were stolen in the breach, representing about 5.6% of its ETH reserves, implying that the ETH reserve ratio could fall to approximately 94%. Stolen assets including ENA, UNI, PEPE, and AAVE accounted for roughly 7% to 15% of Binance's respective positions, and the reserve ratios for USDC and certain altcoins may also have dropped below 100%.

Binance and co-CEO One affirmed that user funds are secure and all user balances will be fully reimbursed. CoinDesk noted that Binance’s next reserve snapshot is scheduled for November 1, which will reveal whether the stolen assets have been replenished. Binance has not yet responded to CoinDesk's request for comment.