Binance Halts Withdrawals on Several Networks After Suspected Hack; CZ Expects Full Cover
Author: Crypffalo Research · 06:58 30/10/2026
Binance paused withdrawals on several networks after an estimated $3.3–5.7 billion left its hot wallets. The exchange says user funds are safe but has not confirmed a hack; CZ expects users to be made whole.
Binance has paused withdrawals on multiple blockchain networks after an unusually large outflow from its hot wallets late Thursday (UTC). Spokesperson Ross O'Leary told TechCrunch the move was "a precautionary measure" following a security incident.
In a post on X around 22:33 UTC, Binance said user funds remain safe and that withdrawals will resume once the issue is fully resolved. The exchange has not disclosed a loss figure and has not called the incident a hack.
Key takeaways
- What's new: Binance suspended withdrawals on several networks, with no timeline for reopening.
- Estimated outflows: Blockaid puts the figure near $3.3 billion; CoinDesk and Coinbase's Conor Grogan cite $5.7–5.8 billion.
- Frozen so far: Tether froze more than $1.56 billion in USDT and Circle froze more than $800 million in USDC.
- Making users whole: CZ, speaking as a shareholder, said he expects all user funds to be fully covered; Binance has not said whether SAFU or its own capital will be used.
- Market: roughly $628 million in positions were liquidated within an hour, and BNB fell about 6–7%.
What Binance has and hasn't said
Binance's first statement only referenced "reports of a potential security issue" under investigation. About an hour later, the exchange confirmed the withdrawal pause and stressed that user funds were safe.
At the time of writing, Binance had not clarified:
- The technical cause and which systems were compromised.
- The actual loss after freezes.
- Whether losses will be covered by SAFU or the exchange's balance sheet.
- When withdrawals will reopen.
A status-page snapshot taken by CryptoTicker at 22:32 UTC showed withdrawals paused for SOL, XRP, and USDT/USDC on Solana, Optimism, Avalanche, and NEAR. BTC and ETH on Ethereum mainnet remained open at the time.
Outflows versus what has been frozen
Estimates of the scale still vary widely. Blockaid counted roughly $3.3 billion leaving wallets on Ethereum, Arbitrum, and Avalanche, while CoinDesk estimated more than $5.7 billion affected.
Stablecoin issuers moved quickly to block the funds:
- Tether: CEO Paolo Ardoino said more than 1.56 billion USDT was frozen.
- Circle: CEO Jeremy Allaire said more than $800 million in USDC was frozen.
- Others: CoinDesk cited Binance as saying Ripple froze about $200 million, while World Liberty froze around $27 million in USD1.
Native ETH cannot be frozen. Onchain data shows the attacker forwarded about 195,460 ETH, worth more than $440 million, to another wallet.
Aave also froze some lending markets to stop the attacker from using stolen assets as collateral. The receiving wallet was reportedly funded with fees from Tornado Cash, and analysts suspect a key compromise or abuse of EIP-7702 delegation.
What it means for crypto markets
Bitcoin dipped to about $78,763 at 21:00 UTC and traded near $78,800 afterward. BNB took a heavier hit, falling about 6–7% to around $704, while some $607 million in long positions were wiped out.
- Bull case: Binance discloses the cause, confirms full coverage from SAFU or its own capital, and reopens withdrawals quickly, steadying sentiment much as Bybit did after its early-2025 hack.
- Risk case: if the real loss proves larger or withdrawals stay frozen for long, users may rush to pull funds once they reopen, adding pressure on BNB and broader liquidity.
The SAFU fund is reportedly worth about $1 billion and held in bitcoin. That is smaller than some analysts' estimates of the net loss, so any coverage may lean on Binance's own balance sheet.
What to watch next
- An official Binance statement on the cause and the size of the loss.
- Network-by-network reopening of withdrawals.
- Movements of the stolen ETH and any further freezes.
- Net outflows from Binance and BNB price action once withdrawals resume; follow real-time liquidations and the economic calendar.
Frequently Asked Questions
Has Binance confirmed it was hacked?
Not yet. The exchange has only described a security incident and said user funds are safe; the word "hack" came from CZ and onchain analysts.
Can I withdraw from Binance right now?
Withdrawals are paused on several networks, while some remain open according to the status page. Binance says they will reopen once the incident is resolved.
Who will bear the losses?
Binance has not announced a plan. CZ said he expects users to be fully covered, but that is his personal view as a shareholder.
*This content is for information only and is not financial advice.*
Tags: Binance, Security, Hack, BNB, Stablecoins
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