Binance hack drained wallets backing customer assets, reserve data shows

Binance's own proof-of-reserve data shows the wallets drained in a recent hack were listed as backing customer balances, leaving its ether reserves an estimated 6% short until the exchange replaces the stolen funds. The disclosure matters because it ties a security breach directly to the collateral behind user deposits, raising questions about whether customer assets were fully backed at the time of the incident. Traders will watch for Binance to restore the shortfall and for any sign of withdrawals or a confidence hit to ETH and BNB.