📢 Flash
Ethena: Monitoring Potential Security Incident at Binance; Collateral Held Off-Chain
Ethena—the issuer of the synthetic dollar USDe—announced on X that it has become aware of a potential security incident involving Binance. The company emphasized that all collateral related to exchanges is held off-chain by third-party custodians and is not directly deposited with any exchange. Ethena stated it will provide timely updates via its official X account as more details about the incident emerge.
The firm later disclosed that its unrealized P&L exposure to Binance is approximately $8.8 million—significantly lower than its overcollateralized reserve fund, which exceeds $60 million. Real-time data on collateral and reserve funds is available on Ethena’s Transparency Page. Within hours, proof-of-reserves reports—audited independently by multiple external firms—will also be posted in this X thread.
On the same day, Binance responded, confirming it is conducting an internal investigation into the potential security issue and pledging to share verified information through official channels.
The firm later disclosed that its unrealized P&L exposure to Binance is approximately $8.8 million—significantly lower than its overcollateralized reserve fund, which exceeds $60 million. Real-time data on collateral and reserve funds is available on Ethena’s Transparency Page. Within hours, proof-of-reserves reports—audited independently by multiple external firms—will also be posted in this X thread.
On the same day, Binance responded, confirming it is conducting an internal investigation into the potential security issue and pledging to share verified information through official channels.
