Binance published an extended reconciliation of client funds after a $6.34 billion theft. The exchange stated that it had returned about 98% of the affected assets to balances. Withdrawals, however, are not working in full.
What proof of reserves is. This is a public audit in which the exchange shows that its balances cover clients' holdings. Simply put, the platform proves that users' money is actually there.
Why this matters to a trader. Until the reconciliation is complete, access to your funds on Binance depends on the exchange's decisions.
What figures did the exchange cite?
- 44 tokens - the number of assets now covered by proof of reserves
- 98% - the share of affected coins already returned to client balances
- November 4 - by the evening of this day the cryptographic proof was not yet complete
Part of the withdrawals is closed. Funds cannot be withdrawn in all directions.
How was Binance hacked?
The attack was prepared over months. That is how the exchange itself describes the campaign.
- A fake job interview. A bogus job offer became the entry point.
- A malicious file. Under the guise of hiring, the person is sent a test assignment or a file through which malicious code gets onto their computer.
- An incomplete halt on withdrawals. The report says the withdrawal stop did not cover all outgoing transfers.
What does this mean for a trader?
Money on an exchange is available exactly to the extent that the platform allows it to be withdrawn. The "withdraw" button works only with its consent.
Key point: while the proof of reserves is not complete and withdrawals operate in a partial mode, the balance on Binance depends on the exchange's internal procedures, not on your "withdraw" button.
What happens next?
The exchange promises to complete the proof of reserves and fully reopen withdrawals. There is no specific date in the statement.
- There is one reference point - the next publication by Binance itself
- For crypto trading through prop firms, you can pick a challenge to suit your market and avoid keeping your entire capital on an exchange
Do you keep a trading balance on an exchange?
When part of your money sits on an exchange, you notice days like this by your balance, not by the headlines. In crypto challenges, the trading nominal is provided by the prop company. But the coin list, leverage on altcoins, holding a position over the weekend and the daily loss calculation are different for each. These points are better checked against your own style before paying for a program. Otherwise, a mismatch surfaces on the very first payout.