Ethena, the issuer of synthetic dollar USDe, said it is monitoring a potential security incident involving Binance and moved to clarify how its collateral is held. In a post on X, the company said all collateral tied to exchange exposure is kept with off-exchange custodians rather than being stored directly on the exchange itself. Ethena later added that its unrealized profit and loss exposure to Binance totals about $8.8 million, a figure it said is well below its more than $60 million reserve fund. The company also said collateral and reserve fund data can be checked on its transparency page, and that a proof of reserves conducted by multiple external firms would be posted in the same thread within hours. On the same day, Binance said it was investigating reports of a potential security issue and would release verified information through official channels. Binance co-founder Changpeng Zhao said the situation appeared to be an attack targeting Binance and added that he expected user funds to be fully covered.
Ethena, the issuer of synthetic dollar USDe, said it is watching a potential security incident related to Binance.
In a post on X, Ethena said all collateral tied to exchange exposure is held with off-exchange custodians, not directly on the exchange itself.
The company said it would provide updates through its official account after learning more details about the incident. Ethena later added that its unrealized profit and loss exposure to Binance totals about $8.8 million, well below its reserve fund of more than $60 million.
Ethena also said information on its collateral and reserve fund is available on its transparency page. It added that a proof-of-reserves report conducted by multiple external firms would be posted in the discussion thread within hours.
On the same day, Binance said it was investigating reports of a potential security issue and would publish verified information through official channels.
Binance co-founder Changpeng Zhao later wrote that the situation appeared to be an attack against Binance and said he expected user funds to be fully covered.
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