Binance plans to release full proof-of-reserves report by November 2

Binance plans to release full proof-of-reserves report by November 2

Binance

The exchange says it will capture its reserves in roughly half a day and publish the results by Monday

Binance plans to release a full proof-of-reserves report by November 2, following a security incident that led to nearly $6.3 billion being drained from the exchange’s hot wallets on October 29. The exchange has committed to covering the losses entirely with company funds, and has reserved over $6.34 billion for that purpose, with $5 billion already in matching assets.

All customer assets stored in cold wallets were unaffected by the breach. Withdrawals are expected to resume by November 1 after thorough security checks.

What Binance is actually doing

The core idea behind proof of reserves is simple. An exchange shows that the assets it controls are at least equal to what its customers are owed.

The harder part is proving the liabilities side without exposing everyone’s account details. Showing a wallet full of coins is easy. Showing that those coins cover every customer, without publishing every customer’s balance, takes more work.

A program with a starting line

Binance’s proof-of-reserves system was fir...