Binance hack drained wallets backing customer assets, reserve data shows
Source: CoinDesk ·
From the source
Binance’s own reserve data lists the drained wallets as backing customer balances, leaving its ether backing an estimated 6% short until the exchange replaces what was stolen. The Binance wallets emptied in Thursday’s hack are the same wallets the exchange lists as proof that customers’ crypto is fully backed, according to a CoinDesk review of Binance’s own reserve data . That means that Binance’s 1:1 backing of some assets, ether in particular, has likely fallen below 100% until the exchange replaces what was taken. Every month, Binance publishes a list of wallets it controls and what they hold, and compares those totals with what customers hold on the platform. Its most recent report, dated Oct. 1, includes a wallet labeled “Binance 14,” the wallet at the center of the attack. At the time of the report, it held 1.26 billion USDT and 89,475 ETH, among 37 assets. The attacker used an Ethereum feature called EIP-7702 , which lets a wallet hand control to a piece of software. After…