Binance Proof of Reserves After the Hack: What Finance Teams Should Do

Binance says it has completed a fresh zero-knowledge proof of reserves for ten assets, and that is useful evidence for finance teams, but it is not a substitute for your own records. Any firm running crypto accounting software against Binance balances now has to decide how to treat a reserves attestation, a partial withdrawal restoration and a stated 95% replenishment, all while the exchange recovers from what The Block describes as the largest known crypto exploit on record.

What Binance Announced

The proof of reserves snapshot

According to The Block, Binance completed a new zero-knowledge proof of reserves snapshot covering BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC. Users holding those assets can independently verify that their balances are backed 1:1. Binance Co-CEO Richard Teng described it on X as another way for users to check that assets are backed, and added that there is still work to do.

Co-founder and co-CEO Yi He explained that the snapshot is only the first step. Computation is needed to turn it into the updated full zero-knowledge proof, and generation time depends on how many tokens are included. Binance currently estimates about 40 to 50 hours after the snapshot completes.

Replenishment and the withdrawal timeline

Binance said it has replenished about 95% of the affected assets with its own funds. The remaining 5% sits in less-liquid tokens it is still working to acquire. Another reserves snapshot is planned for Wednesday, and the exchange expects to begin progressively restoring withdrawals for additional networks and assets on Tuesday.

The wider context

Onchain investigators say Binance's internal systems and wallet-signing mechanisms were exploited to move more than $6 billion across multiple blockchains. On Sunday, SomaXBT said North Korean hackers were laundering funds stolen from Binance on Tron. StoneX analysts wrote on Monday that the response from issuers, DeFi protocols and Binance was faster and better coordinated than anything the industry had managed before. DeFiLlama data cited by The Block shows a figure of approximately $3.29 billion, down more than 50% from an earlier peak of around $7 billion, and shows Binance holding approximately $127.78 billion across its linked onchain wallets.

We have covered the earlier phases of this event in our pieces on the withdrawal suspension and its accounting implications and the hack reserve.

Why a Proof of Reserves Is Not an Audit

What it can tell you

A zero-knowledge proof of reserves lets a user check that their own balance is included and backed without exposing other customers' data. For a finance team, that is a helpful corroborating data point about the existence and backing of customer balances at a specific snapshot moment.

What it cannot tell you

The source describes a snapshot of reserves for ten listed assets. It does not, on its own, tell you about liabilities outside that scope, about assets not in the list, or about the exchange's wider financial position. For auditors, that distinction matters. Evidence of backing at a point in time is not the same as assurance over completeness, rights and obligations, or valuation, and it should be documented as one input rather than treated as a conclusion.

The assets outside the ten named tokens deserve particular attention. Binance said the remaining 5% of affected assets are in less-liquid tokens it is still acquiring. If your balances include tokens outside the proof scope, you currently have less independent comfort on them, and your working papers should say so plainly.

Accounting Implications for Firms and CFOs

Balances held on the exchange

Where a client or your own treasury holds assets on Binance, the key questions are existence, rights and recoverability at the reporting date. A completed proof of reserves supports existence for the covered assets. A withdrawal restriction affects whether those assets are readily accessible, which matters for liquidity assessments and for how balances are presented and disclosed. Which treatment is right depends on the reporting framework and the facts, so document your reasoning and involve the engagement partner early.

Timing is the practical problem. Withdrawals are being restored progressively by network and asset, so two holdings on the same exchange can be in different states on the same day. Reconciliations should capture, per asset and per network, whether withdrawals were available at the cut-off date.

Reconciliation and records

Good crypto bookkeeping software should let you tie exchange-reported balances to onchain wallet data and to your general ledger, with a clear audit trail. During an incident like this, keep dated evidence: the exchange's published statements, the proof of reserves verification output for the relevant snapshot, screenshots or exports of balances, and notes on which withdrawals were restored when. Digital asset accounting software is only as reliable as the source data feeding it, so lock down those source records now while they are easy to obtain.

Subsequent events and disclosure

If your reporting date falls close to these developments, consider whether the events are relevant for subsequent-event assessment and for disclosure of concentration and counterparty risk. We do not have facts about any individual client's exposure, so this is a prompt for judgement, not a conclusion. Our overview of enterprise risk management for crypto-active firms sets out how to frame counterparty concentration.

Tax and AML Implications

For individual filers

The source does not report any tax guidance tied to this event, and we will not guess at it. What individuals can do is keep clean records. Export your transaction history and balance statements from the exchange, note dates of any restricted withdrawals, and keep the proof of reserves verification result if you ran one. If you later need to evidence the cost basis, holding period or any loss claim, contemporaneous records are far easier to defend than reconstructions. Whether any loss is recognised for tax depends on your jurisdiction's rules, so speak to a qualified adviser rather than assuming.

For firms handling AML obligations

The laundering reports matter for compliance teams. SomaXBT said North Korean hackers were moving stolen Binance funds through Tron, and The Block notes the FBI is pressing THORChain. Firms that onboard clients or process payments with crypto exposure should confirm their screening and transaction monitoring can flag exposure to addresses linked to the exploit. Our related coverage includes the analysis of the Tron laundering activity and the practical steps firms should take now.

For wider context on how this fits into reporting duties, see our crypto compliance reporting pillar.

Practical Next Steps

This week

• Record Binance's Wednesday snapshot and the follow-up full zero-knowledge proof when it is published, noting the 40 to 50 hour generation estimate.
• Log which networks and assets have withdrawals restored, with dates.
• Identify holdings outside the ten proof-covered assets and flag them as lower-assurance.

Before your next close

• Update counterparty risk assessments and any concentration disclosures.
• Confirm your reconciliation process ties exchange data, onchain data and the ledger.
• Agree with clients which evidence you will accept for exchange-held balances.

A note on tooling

If your current crypto accounting software cannot show per-asset, per-network availability or preserve point-in-time balance evidence, treat that as a gap to close. The lesson of this event is that exchange status can change quickly, and your records need to show what was true on a given date.

FAQ

What did Binance's latest proof of reserves cover?

Per The Block, it covers BTC, ETH, USDT, BNB, SOL, USDC, XRP, USD1, RLUSD and ZEC, letting holders verify their balances are backed 1:1.

Does a proof of reserves replace an audit?

No. It is evidence of backing for listed assets at a snapshot moment. It does not give assurance over liabilities, unlisted assets or the exchange's wider finances.

When will withdrawals be fully restored?

The source gives no full-restoration date. Binance expects to begin progressively restoring withdrawals for additional networks and assets on Tuesday.

How much has been replenished?

Binance said about 95% of affected assets were replenished with its own funds, with the remaining 5% in less-liquid tokens it is still working to acquire.

What should individual filers do now?

Export transaction and balance records, note dates of any withdrawal restrictions, and ask a qualified adviser how your jurisdiction treats any loss.

Source: The Block