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, stated in a post on X that it is aware of potential security incidents related to Binance. Ethena indicated 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 known.

Subsequently, Ethena added that the total unrealized profit and loss exposure to Binance amounts to approximately 8.8 million dollars, significantly lower than the excess reserve fund of over 60 million dollars. Ethena stated that information regarding collateral and reserve funds can be found on its transparency page, and it will provide reserve proof executed by multiple external agencies within a few hours, published in that discussion thread.

On the same day, Binance announced that it is investigating reports of potential security issues and will release verified information through official channels. Binance co-founder Changpeng Zhao stated that the situation appears to be an attack on Binance and expressed expectations that user funds will be fully covered.