Ethena: Has been monitoring potential security incidents at Binance, with collateral held in over-the-counter custody

The issuer of synthetic US dollars USDe, Ethena, posted on X that it is aware of potential security incidents related to Binance. Ethena stated that all collateral with exchange exposure is held with an off-chain custodian, rather than directly on the exchange itself. Ethena mentioned that updates will be provided through its official account once more details about the incident are understood.

Subsequently, Ethena added that the unrealized profit and loss exposure to Binance totals approximately 8.8 million dollars, significantly lower than the excess reserve fund of over 60 million dollars. Ethena indicated that information about collateral and reserve funds can be found on its transparency page, and that reserve proofs executed by multiple external organizations will be provided within a few hours, published in this discussion thread.

On the same day, Binance stated that it is investigating reports regarding potential security issues and will publish verified information through official channels. Binance co-founder Changpeng Zhao posted that the situation appears to be an attack against Binance and expressed the expectation that user funds will be fully covered.