USDT Reserves on Binance Drop by 7.95% After Attack

Binance published a report on reserves as of October 31: users' USDT holdings decreased by 7.95% to 29,483,062,742 tokens. The drop amounted to 2,544,682,319 USDT. The snapshot was taken before the resumption of withdrawals on November 1 and is compared with data from October 1.

Bitcoin balances increased by 3,614 BTC, or 0.52%, to 692,187 BTC. Ethereum reserves decreased by 144,217 ETH, or 3.80%, to 3,654,919 ETH. BNB decreased by 401,669 tokens, or 0.93%, to 42,638,276 BNB.

Coverage of USDT dropped to 100%, with 10 assets remaining in the report

The USDT coverage ratio decreased from 103.88% to 100.00%: reserves equaled clients' account balances, whereas at the beginning of the month, they exceeded them by 3.88%. BTC coverage was 100.04%, BNB – 101.30%.

The report as of October 31 includes 10 major assets: BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD, and ZEC. The snapshot from October 1 included 55 assets. Binance explained that the 10 listed assets are fully replenished, while the remaining are less liquid and require additional purchases through exchanges and the over-the-counter market. This explanation does not mean that other coins have disappeared from clients' accounts or were intentionally hidden. Full zero-disclosure proof will take approximately 40–50 hours and is expected on November 3.

After the resumption of withdrawals, $3.64 billion left in 9.5 hours

Binance began resuming withdrawals on November 1 after a suspension due to an attack on October 29. Initially, BTC withdrawals were opened, followed by ETH, USDT, USDC, and other assets; the phased opening affected 15 blockchain networks. From 06:00 to 15:30 UTC on November 1, the exchange processed $4.649 billion in withdrawals and $1.01 billion in deposits – a net outflow of nearly $3.64 billion in nine and a half hours, or 2.1% of $171 billion in assets.

CryptoQuant analyst Darkfost reported 19,569 BTC worth almost $1.5 billion and 154,147 ETH worth nearly $360 million, as well as $1.96 billion USDT and $557 million USDC. These data pertain to the period after the resumption of withdrawals and are not included in the October 31 snapshot. Analyst MaxiCalls estimated that about 16,000 BTC left in the first 12 hours – approximately 2.4% of bitcoin reserves – but considered this not necessarily a sign of panic; it is an interpretation of flows rather than confirmation of clients' withdrawal reasons.

By November 1, Binance had replenished nearly 95% of the affected assets by purchasing replacements with corporate funds, BTC, and ETH. The exchange promised to cover losses from its own resources, SAFU, and part of the futures insurance fund.