Binance USDT Balances Fall 7.95% as Outflows Follow

| coinotag.com
Binance’s October 31 proof-of-reserves snapshot showed customer USDT balances fell 7.95% month over month to 29.48 billion, down about 2.545 billion. The decline was the largest percentage drop among the 10 assets in the disclosure, but the balance data alone does not explain whether it resulted from withdrawals, trading or transfers. Binance’s USDT reserve coverage ratio fell from 103.88% to 100%, meaning reported reserves matched customer balances on the snapshot date. The report covered 10 cryptocurrencies, compared with 55 in the previous snapshot; Binance said it had replenished the listed assets and expected to publish a complete zero-knowledge reserve proof by November 3. Other reported balances included 3.65 million ETH, down 3.80%; 692,187 BTC, up 0.52%; and 42.64 million BNB, down 0.93%. The snapshot predates withdrawals reopening on November 1 and therefore does not reflect subsequent outflows. Binance later reported $4.649 billion in withdrawals and $1.01 billion in deposits over nine and a half hours, for net outflows of about $3.64 billion. The movements followed a reported $6.3 billion security breach; Binance said it was replenishing affected assets and would cover losses.
Neutral
The news is neutral for USDT’s price because the reported decline concerns customer balances held on Binance, not a confirmed loss of USDT’s dollar peg. A 100% reserve coverage ratio means reported reserves matched customer balances on the October 31 snapshot, while the later net outflows reflect activity at the exchange and do not by themselves establish selling pressure on USDT across the wider market. In the short term, concerns about the security incident and withdrawals could prompt traders to monitor USDT’s peg, liquidity and exchange flows more closely. However, neither summary reports a depeg or other direct price dislocation. Over the longer term, confidence would depend on the completeness and verification of Binance’s reserve disclosures and its handling of the incident. Those factors may affect USDT demand on the platform, but the available information is insufficient to infer a directional price impact on USDT itself.