Binance's Proof of Reserves showed major cryptocurrencies backed at or above 100% before the October 29, 2026 security incident. This reference examines reported reserve ratios, verification methods and what remains uncertain for exchange users.
Binance's Proof of Reserves reported at least 100% backing for major cryptocurrencies before its October 29, 2026 security incident. However, earlier snapshots cannot establish reserve coverage after the event. This reference helps Binance users and cryptocurrency researchers compare historical reserve data, understand verification methods and identify the evidence needed to assess current asset backing. Last Verified on October 30, 2026
Key Takeaways
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Binance's September and October 2026 Proof of Reserves snapshots reported at least 100% coverage for BTC, ETH, USDT and USDC.
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The October 29 security incident raised questions about whether previously reported reserve balances remained intact.
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Proof of Reserves establishes asset backing at a particular time, not ongoing solvency.
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Independent verification requires wallet ownership evidence, customer liabilities, cryptographic proofs and updated asset balances.
Binance Proof of Reserves: September and October 2026 Data
Binance maintains a stated policy of backing customer assets 1:1. Its September and October snapshots reported major cryptocurrencies at or above 100% reserve coverage.
| Asset |
September 1, 2026 |
October 1, 2026 |
Post-Incident Status |
| Bitcoin (BTC) |
100.16% |
100.35% |
Requires updated verification |
| Ethereum (ETH) |
100.00% |
100.00% |
Potential reserve shortfall reported |
| Tether (USDT) |
102.91% |
103.88% |
Requires updated verification |
| USD Coin (USDC) |
112.06% |
108.26% |
Requires updated verification |
| Overall solvency |
Not established |
Not established |
Not independently established |
Source: Binance Proof of Reserves**, with historical figures cross-checked against published reserve-data comparisons. October figures represent the October 1 snapshot, not balances after October 29.
The September figures establish historical coverage. The October figures provide a more recent baseline but cannot independently confirm the exchange's financial condition following the security incident.
Binance's 18th Proof of Reserves release occurred in May 2024, not September 2026.
What Changed After the October 2026 Security Incident?
On October 29, Binance acknowledged reports of a potential security issue and temporarily restricted withdrawals while investigating. The exchange said customer funds were safe.
Reuters reported that approximately $2.54 billion in assets linked to the incident had been frozen, with subsequent reports indicating higher totals.
Blockchain reporting also identified suspected unauthorized transfers from wallets included in Binance's October 1 reserve disclosure.
One analysis estimated that affected ETH balances could temporarily reduce Ethereum reserve coverage to approximately 94%, assuming no replacement assets or other adjustments. This was an analytical estimate, not a confirmed post-incident reserve ratio.
Binance's historical records therefore require updated verification rather than being treated as proof that current liabilities remain covered.
How to Verify Binance Proof of Reserves After a Hack
A reliable Proof of Reserves assessment combines cryptographic integrity, verified asset control and complete customer liabilities.
| Verification Requirement |
What It Establishes |
| Wallet ownership |
Cryptographic signatures establish control of disclosed addresses |
| On-chain balances |
Blockchain records confirm assets at identified wallets |
| Merkle tree |
Users verify inclusion of individual account balances without disclosing other users' data |
| Zero-knowledge proofs |
zk-SNARKs validate reported calculations and nonnegative net account balances |
| Customer liabilities |
Complete records establish the obligations reserves must cover |
| Historical transactions |
Wallet movements reveal changes before and after snapshots |
| Independent attestation |
External review strengthens confidence in published evidence |
Binance's account balance verification guide explains its Merkle tree and zk-SNARK verification system.
Users can locate their verification record through Binance's wallet verification interface and compare it with published cryptographic data.
The reserve coverage ratio is calculated as:
Reserve Coverage Ratio = Verified Eligible Assets ÷ Verified Customer Liabilities × 100
A result of 100% indicates that eligible assets equal reported liabilities for the asset examined.
However, meaningful verification also requires checking whether reserves are borrowed, pledged, encumbered or affected by undisclosed obligations.
Why Proof of Reserves Cannot Establish Solvency
Proof of Reserves is a historical record. It does not automatically establish that an exchange can meet every financial obligation.
Its principal limitations include:
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Off-chain liabilities: Corporate debt, legal claims and other obligations may fall outside published customer-balance calculations.
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Snapshot timing: Assets can leave an exchange after its verification timestamp.
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Incomplete disclosure: Undisclosed wallets, customer accounts or liabilities can distort reported coverage.
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Asset segregation: Customer assets should remain separated from corporate operating funds.
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Verification independence: Self-published reserve data does not replace a comprehensive third-party financial audit.
The Gate Proof of Reserves framework also illustrates how Merkle trees, zk-SNARKs and wallet verification support transparent reserve assessments.
Independent auditors should trace wallet transactions around the incident and reconcile post-incident holdings with customer liabilities. Frequently updated cryptographic attestations would provide stronger monitoring than monthly snapshots alone.
Binance SAFU Fund and Customer Asset Protection
Binance maintains its Secure Asset Fund for Users (SAFU), an emergency reserve intended to address exceptional security events.
The fund is separate from the exchange's ordinary Proof of Reserves calculations. Its existence does not establish that every customer liability is covered following a breach.
After a major security incident, an assessment should identify the fund's available assets, any withdrawals, customer compensation commitments and the remaining financial obligations.
Frequently Asked Questions
Does Binance still have 100% reserves after the 2026 hack?
The available pre-incident snapshots reported at least 100% coverage for major assets. Those historical figures do not independently establish post-incident coverage. Updated reserve data and independent reconciliation are necessary.
Can Binance users independently verify their reserves?
Yes. Binance provides Merkle tree and zk-SNARK tools that allow users to verify their account balances were included in a particular snapshot. This does not establish comprehensive corporate solvency.
Does Proof of Reserves guarantee that customer funds are safe?
No. Proof of Reserves measures reported backing at a specific time. It does not eliminate hacking, operational, liquidity or undisclosed liability risks.
When will updated Binance Proof of Reserves data be available?
Binance's documented monthly schedule uses snapshots taken on the first day of each month, with publication generally by the seventh. The next scheduled snapshot is November 1, 2026, although the incident may affect normal reporting.
Disclaimer: This reference is for informational purposes only and does not constitute financial advice. Reserve figures are historical, and cryptocurrency exchange security assessments can change as investigations and new disclosures emerge.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
