Binance has completed restoration of 95 percent of assets lost in a recent security breach, the exchange said, and launched a user-verifiable proof-of-reserves system covering Bitcoin, Ethereum, BNB, Solana and XRP.
The verification mechanism allows users to independently confirm that the exchange holds sufficient assets to cover stated holdings through cryptographic proofs that reveal reserve totals without exposing individual user balances.
Binance did not disclose the exact date, total amount lost or technical details of the breach. The 95 percent replenishment figure indicates the scale of recovery efforts.
The move directly addresses a persistent criticism of centralized exchanges: opaque reserve management. Proof-of-reserves systems have become a baseline expectation for custodial platforms following bankruptcies and insolvencies at competitors including FTX and Celsius Network in 2022.
Proof-of-reserves mechanisms operate by hashing user account data and publishing cryptographic commitments on-chain, allowing independent auditors and users to verify that stated reserves match claimed liabilities. The system does not require revealing proprietary trading positions or individual account details.
Binance's implementation follows a wave of similar reserve-verification systems rolled out across the industry. The technical standard remains nascent — no unified verification protocol exists across exchanges, and systems vary in auditability and computational transparency.
