Binance Probes Suspected Security Breach as Tether and Circle Freeze About $1.8 Billion in Stablecoins

Binance said it is looking into a potential security incident that followed suspicious wallet transfers. Founder Changpeng Zhao (CZ) acknowledged an apparent hack, said the stolen funds had been frozen and stated that customer funds remain safe. Binance has not confirmed what the impact on users is.

Estimates of the scale differ. Decrypt cited an on-chain tally of at least $5.57 billion leaving Binance-linked wallets across Ethereum, Bitcoin and Tron. BeInCrypto reported more than $2 billion going from hot wallets to an address funded via Tornado Cash. Other outlets describe the loss only as potentially multi-billion. Binance has not verified any of these figures.

Reports put the amount frozen by Tether and Circle at about $1.8 billion in USDT and USDC. Earlier reports quoted Tether at nearly $1 billion and then at over $1.5 billion, while CZ cited nearly $1.8 billion. Whale Alert also flagged a move of 57,891 ETH, about $132.6 million, from a wallet labelled as linked to the hack to a new unknown wallet.

Markets reacted quickly. BeInCrypto reported $628 million of crypto liquidations within one hour, and Bitcoin dropped below $79,000. Fear over the safety of exchange-held funds can trigger forced selling. Stablecoin freezes can reduce available liquidity and complicate the thieves' exit routes.