Binance Reserves Shift as Exchange Navigates $6.3 Billion Security Breach

The October 31 audit reflects a significant narrowing of scope, tracking only 10 major assets compared to 55 in the previous month’s report. While USDT balances dropped to 29.48 billion tokens, Ethereum holdings also saw a 3.80% decline. Conversely, Bitcoin balances recorded a slight uptick of 0.52%, reaching 692,187 BTC. Binance officials attributed the focused reporting to the status of asset replenishment, noting that these 10 assets were fully recovered while others remain in the process of being acquired through over-the-counter markets.

Following the resumption of services on November 1, the exchange faced a surge in exit activity. In the first nine and a half hours, Binance processed $4.649 billion in withdrawals against $1.01 billion in deposits, resulting in a net outflow of $3.64 billion. Despite these figures, the exchange maintains that the movement represents only 2.1% of its reported $171 billion in total assets. Analysts, including those monitoring on-chain flows, suggest the volume reflects expected liquidity shifts following the lockout rather than a broader collapse in user confidence. Binance expects to release a complete zero-knowledge proof by November 3 to further verify account-level holdings.