Security

Stablecoin

Ethereum

Billion

<p>Binance said on Thursday its security teams are investigating reports of a potential security issue, while maintaining that user funds are "completely safe". The exchange has not confirmed a hack, and stablecoin issuers have moved to freeze more than $2.3 billion in tokens linked to the incident.</p>
<h2 id="what-binance-has-said">What Binance Has Said</h2>
<p>In a post on X, <a href="https://x.com/binance" rel="noopener noreferrer nofollow">@binance</a> said its teams are aware of reports of a potential security issue and are actively investigating. <cite>The exchange said its security teams are reviewing all relevant information with urgency and will provide updates through official Binance channels once information is verified.</cite><cite>It also told users to remain cautious of scams and not to trust unofficial links, messages, or requests for account information.</cite></p>
<p><cite>According to ShiftDelete.Net, the statement was posted at 21:15 UTC and edited several times, with the final version at 21:29 UTC stating that user funds are completely safe.</cite><cite>Binance has not said how much was moved</cite>, and <cite>the root cause has not been confirmed.</cite></p>
<h2 id="stablecoin-issuers-freeze-funds">Stablecoin Issuers Freeze Funds</h2>
<p>Tether CEO <a href="https://x.com/paoloardoino" rel="noopener noreferrer nofollow">@paoloardoino</a> said the company froze more than $1.56 billion in <a href="https://x.com/search?q=%24USDT&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$USDT</a> tied to the potential hack. <cite>Ardoino said Tether "froze more than 1.567B USDT related to a potential Binance exchange hack".</cite> Circle CEO <a href="https://x.com/jerallaire" rel="noopener noreferrer nofollow">@jerallaire</a> said the company froze more than $800 million in <a href="https://x.com/search?q=%24USDC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$USDC</a>. <cite>He said this was done in coordination with law enforcement, and that Circle would continue supporting the investigation.</cite></p>
<p><cite>USDT and USDC are stablecoins designed to hold a value of about $1 each, and their issuers can freeze tokens to stop them being transferred.</cite><cite>Issuers cannot freeze ETH or BTC, so those assets that left Binance wallets fall outside the freezes, according to Coindoo.</cite></p>
<p>Former Binance CEO <a href="https://x.com/cz_binance" rel="noopener noreferrer nofollow">@cz_binance</a> said it "does look like a hack". <cite>"I don't manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered," Zhao wrote on X.</cite></p>
<h2 id="scale-of-the-outflows-remains-unclear">Scale of the Outflows Remains Unclear</h2>
<p>Estimates of the outflows vary. <cite>Crypto Briefing reported roughly $3.3 billion left two Binance hot wallets on Ethereum on October 29, 2026.</cite><cite>Decrypt cited an on-chain tally of at least $5.57 billion leaving Binance-linked wallets across Ethereum, Bitcoin and Tron.</cite><cite>Other analysts pegged the total at between roughly $2.5 billion and over $3 billion, with no official figures provided.</cite></p>
<p>Markets reacted. <cite>FXStreet reported that Bitcoin and Ether fell below $80,000 and $2,300 respectively, with roughly $600 million in liquidations within an hour, according to Coinglass data.</cite><cite>Crypto Briefing also reported that <a href="https://x.com/search?q=%24BNB&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$BNB</a> fell as much as 9% after reports of funds leaving Binance wallets.</cite></p>
<p>The incident remains under investigation, and the exchange has yet to publish a full account of the cause or any confirmed losses. Readers should rely on Binance's official channels for verified updates.</p>
<p><strong>Sources:</strong></p>
<ul>
 <li><a href="https://www.theblock.co/news/markets/2026-10-29-binance-investigating-hack-suspicious-outflows-5-billion-432171" rel="noopener noreferrer nofollow">The Block: Binance investigating hack as suspicious outflows reach up to $5.8 billion</a></li>
 <li><a href="https://decrypt.co/382191/binance-suspected-hack-5-billion-tether-circle-freeze-crypto" rel="noopener noreferrer nofollow">Decrypt: Binance drained in suspected hack, Tether and Circle freeze $1.8 billion</a></li>
 <li><a href="https://unchainedcrypto.com/binance-says-user-funds-are-completely-safe-after-3-5-billion-drains-from-its-hot-wallets/" rel="noopener noreferrer nofollow">Unchained: Binance says user funds are completely safe after hot wallet drain</a></li>
</ul>

Binance Investigates Possible Security Breach as Tether and Circle Freeze Over $2.3 Billion in Stablecoins

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