Binance Investigates Suspected $5.5B-Plus Hack as Tether and Circle Freeze Over $2.3B
Binance has not confirmed a breach, but on-chain data shows billions leaving its hot wallets for a new address, and founder CZ says it appears to be a hack.
Binance is investigating a suspected hack after on-chain data showed more than $5.5 billion in crypto leaving its hot wallets on Oct. 29, in what would be the largest crypto theft on record if confirmed. Binance has not confirmed a breach or the amount, saying its teams are aware of reports of a potential security issue. Tether and Circle froze more than $2.3 billion in stablecoins tied to the transfers, and founder Changpeng Zhao said it appeared the exchange had been hacked while he expected user funds to be fully covered. This is a developing story.
What is known
| Item | Detail |
|---|---|
| Amount leaving wallets | At least $5.57B in the largest tally; estimates range from about $3.3B to $5.8B depending on which wallets and chains are counted |
| Ethereum | About $3.51B, including 167,464 ETH |
| Bitcoin | About $1.44B, roughly 18,270 BTC |
| Tron | About $630M |
| Tether freeze | More than $1.567B in USDT |
| Circle freeze | About $823M in USDC |
| Binance status | Investigating; has not confirmed a breach or the cause |
The frozen stablecoins equal roughly 40% of the largest tally, by our calculation. Estimates differ because analysts are counting different wallets, and the figures could change as investigators trace the funds.
How it unfolded
| Time (ET) | Event |
|---|---|
| About 4:20 PM | An address funded through Tornado Cash submitted an EIP-7702 delegation for a Binance hot wallet |
| About 4:24 PM | First large Ethereum transfer, including 1.615B USDT, to a newly created address |
| About 5:04 PM | Circle froze 823M USDC in the main receiving wallet |
| Later | Binance said it was investigating, Tether announced its freeze and Aave reportedly froze lending markets to block borrowing |
EIP-7702 lets a regular wallet run smart-contract code, and one analyst noted that a delegation can persist and authorize later transfers without another signature. How the attacker obtained the required authorization is not known. Times are converted from UTC by our calculation.
Binance, Tether and Circle respond
Co-founder Yi He said Binance is aware of reports of a potential security issue, that its security teams are reviewing the information, and that updates will come through official channels. He warned users about scams and unofficial links. Zhao, who no longer manages Binance.com, said as a shareholder that he expects all user funds to be fully covered and credited Tether and Circle for freezing funds quickly. Tether CEO Paolo Ardoino and Circle CEO Jeremy Allaire both confirmed the freezes, and Allaire said Circle acted with law enforcement.
Market reaction
BNB fell about 7% to roughly $700. Bitcoin slipped below $79,000, down about 2% to 3%, and Ethereum also declined. Privacy coin Monero rose about 6%. Binance lost about 7,000 bitcoin, or roughly $40 million, in a 2019 hack, and the previous record was the roughly $1.5 billion Bybit theft in February 2025. A confirmed $5.5 billion loss would be more than three times that, by our calculation. For how crypto trading volumes are affecting other platforms, see our Robinhood earnings article.
Sources: Statements from Binance's co-founder, Binance founder Changpeng Zhao, and the chief executives of Tether and Circle; on-chain data and analyst tallies. Figures are preliminary and may change. This is informational, not a recommendation to buy or sell.
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