🔒 Issue of disappearing balances on Binance and the necessary measures to secure data

On October 10, 2025, a number of users on the Binance platform faced an issue with viewing the balances in their accounts, as the balances appeared as zero or temporarily disappeared from the wallets. After an increase in complaints, Binance officially announced that the reason was a temporary technical glitch in the data display system, which has no impact on the actual user balances or the funds stored in the actual wallets.

The platform clarified that the issue was due to a delay in synchronization between the main database and the display servers, leading to a temporary disappearance of balances in the user interface only. After a few hours, the balances were fully restored, and Binance confirmed that all user funds were safe and unaffected.

This incident, although it did not cause direct losses, raised concerns among users and highlighted the platform's need to improve its technical infrastructure and enhance security and transparency mechanisms. The following are the key steps Binance should take to secure user data and prevent any potential breaches.

First: Technical measures to prevent recurrence of malfunctions

Binance should work on developing synchronization systems between databases and display servers by:

  • Create a dual verification system between the master database and the user interface to ensure the accuracy of balance displays.

  • Separate display systems (Frontend) from actual data systems (Backend) so that any fault in the interface does not result in a temporary concealment of funds.

  • Adopt synchronized backup servers that operate in real-time to prevent delays in updating balances.

  • Add an internal instant alert system that detects any discrepancies between actual and displayed balances within seconds.

  • Notify users immediately upon any technical malfunction via in-app notification, not just through Twitter or external channels.

Second: Security measures to protect data from breaches

Securing user data and funds should be a top priority for any financial platform, especially at the scale of Binance. The measures can be summarized in the following points:

First – Protecting infrastructure:

  • Encrypt all data during storage and transmission using strong protocols such as AES-256 and TLS 1.3.

  • Manage keys through Hardware Security Modules (HSM) and prevent them from being stored in plaintext.

  • Use cold wallets to store the majority of assets away from the internet.

  • Implement a multi-signature (Multi-Sig or MPC) system for sensitive keys to reduce the likelihood of breaches.

  • Set a safe liquidity ceiling for hot wallets with constant monitoring of withdrawal operations.

Second – Protecting applications and programming interfaces

  • Enforcing two-factor authentication (2FA) or using physical security keys for users and employees.

  • Monitor API interfaces and prevent any exploitation attempts by setting rate limits.

  • Use web application firewalls (WAF) and conduct regular code inspections to discover vulnerabilities.

  • Adopt strict session control policies and periodically update access tokens.

Third – Internal security and employees:

  • Precisely define access permissions based on tasks (principle of least privilege).

  • Monitor all employee activities and log sensitive changes (Audit Logs).

  • Regularly train employees to handle phishing and social engineering attempts.

  • Review admin permissions periodically and automatically change sensitive passwords.

Fourth – Monitoring and responding to incidents:

  • Activate intrusion detection and monitoring systems (IDS and SIEM) to monitor any suspicious activity.

  • Set up a Security Operations Center (SOC) that operates 24/7 for rapid incident response.

  • Create a ready response plan that includes technical steps and communication with users and regulatory bodies.

  • Publish transparent reports after each incident that include causes and corrective actions.

Fifth – Demonstrating transparency and trust:

  • Conduct independent security audits periodically to ensure that actual balances match what is recorded in the system.

  • Implement a 'Proof of Reserves' system using Merkle Tree techniques to ensure that user funds are indeed present.

  • Enhance communication with users by regularly publishing official reports to reassure them about the safety of their funds.

Third: Summary

Binance confirmed that the recent incident was not a hack, but a temporary technical glitch in the display system, which was quickly resolved without any impact on funds. However, such incidents serve as an important reminder of the need to strengthen security systems and adopt the highest standards of transparency and trust, as user trust is the real capital of any trading platform.