Binance is investigating a potential multi-billion-dollar security breach after blockchain sleuths tracked billions of dollars in crypto draining from the exchange’s hot wallets into a brand-new address on October 29. “Our teams are aware of reports of a potential security issue and are actively investigating,” Binance said on X.
Binance exchange (Credits: CoinDesk)
Binance Suspected Hack: $2.5B to $3.5B Moved in 40 Minutes
According to CoinDesk, on-chain investigators flagged the draining of a Binance wallet into a new externally owned account between 20:24 and 21:04 UTC — roughly 40 minutes. The receiving account held more than $2 billion in various coins, including ETH, USDT and USDC, and Blockaid put the amount moved at nearly $3.3 billion. One transaction alone sent 167,464 ETH plus 63 token transfers to the brand-new address.
The details set off alarms: the receiving addresses were brand new, the assets were pushed onward within minutes, and the activity was funded through Tornado Cash, a mixing protocol that obscures where money came from. Etherscan has tagged one receiving address “Suspect Binance Hot Wallet Exploiter 2.”
Tether and Circle Freeze $1.8B as Crypto Markets Drop
Stablecoin issuers moved fast. Tether froze about $971 million in USDT and Circle froze roughly $823 million in USDC at the receiving addresses — about $1.8 billion total — because centrally issued stablecoins can blacklist specific addresses. Binance founder Changpeng “CZ” Zhao, who no longer manages the exchange, posted that “it does look like a hack on Binance,” while maintaining that user funds are safe and would be fully covered.
Crypto markets fell on the news: Bitcoin slid below $79,000, ether dropped about 3%, and Binance’s own BNB fell roughly 6-7%. If confirmed, the loss would dwarf the previous record — the roughly $1.5 billion Bybit heist of February 2025. Binance has not confirmed any impact on user funds, and this story is developing.
Also Read: Bitcoin Dips Below $80,000 as Tech Jitters and Hawkish Fed Weigh on Crypto
Source: CoinDesk — read the full story there.
