Binance Tightens Security With Zero-Knowledge Proof Upgrade
Binance, the world’s largest crypto exchange, has completed a major security upgrade using zero-knowledge proofs to prove it holds sufficient assets to cover user balances.
The exchange announced the upgrade on November 14 to foster transparency and regain user trust after suffering a major cyberattack.
The new system allows users to independently verify that Binance holds sufficient assets to cover their account balances on a 1:1 basis.
Binance shared snapshots proving it maintains reserves above its users' net account balances across six major cryptocurrencies.
The update covers all assets affected by the recent attack.
Reserve ratios
Binance revealed that its Bitcoin reserves are currently at 100.05%, amounting to about 688,283 BTC, substantially above its net user balances of 687,912 BTC.
The case is similar for other tokens: Ethereum reserves are at 100.02%, while BNB and USDC recorded ratios of 100.39% and 100.07%, respectively.
Binance also reported stronger reserve ratios for USDT and SOL, at about 104.34% and 105.86%, respectively.
The proof of reserves covers assets in Binance's custody on behalf of users, rather than its entire corporate holdings.
Next steps
While withdrawals are being restored in batches, with the last phase scheduled for next week, Binance continues to improve its operations to replenish all affected assets and tighten security.
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