Binance Completes Security System Upgrade After Hacker Attack

On November 14, 2023, Binance, the world's largest cryptocurrency exchange by trading volume, announced the completion of its security system upgrade, undertaken following one of the largest cyberattacks in the history of the crypto industry, which occurred at the end of the month. As part of this update, a new zero-knowledge system for Proof of Reserves (PoR) was created, allowing users to independently verify that the exchange has sufficient assets to cover their accounts on a 1:1 basis.

According to a statement from Binance, the exchange provides data on its reserves for six major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), which enhances user trust in its operational activities. Currently, Bitcoin reserves stand at 100.05%, meaning the exchange holds about 688,283 BTC, while the net user balance is 687,912 BTC. This confirms a high level of client fund insurance and Binance's commitment to regaining trust after the recent incident.

Ethereum shows a reserve level of 100.02%, while for tokens BNB and USDC, this figure is 100.39% and 100.07% respectively. The exchange also reported strong reserve ratios for the stablecoin USDT and Solana, reaching 104.34% and 105.86%. This indicates that Binance has more assets than required to cover its obligations to users. Additionally, the withdrawal recovery is progressing gradually, with the final phase of recovery scheduled for next week, which should also help restore user trust. It is important to note that the PoR system covers only those assets held by the exchange on behalf of users, not all corporate assets, confirming full client fund coverage. Binance continues to enhance its operations, aiming to further strengthen security and provide its users with confidence in the stability and reliability of the services offered.