Binance suspected hack hits up to $5.7B as Tether, Circle freeze $2.3B+
Author: Crypffalo Research · 04:54 30/10/2026
On-chain tallies of funds leaving Binance hot wallets climbed to at least $5.57 billion across three chains. Tether and Circle froze more than $2.3 billion in stablecoins as Binance investigates.
The suspected breach at Binance has grown sharply in about an hour. At least $5.57 billion has left Binance-linked hot wallets on Ethereum, Bitcoin and Tron, according to an on-chain tally cited by Decrypt, roughly double the $2.5 billion first flagged.
CoinDesk puts the figure near $5.7 billion, while The Block tracked suspicious outflows of up to $5.8 billion. Binance says it is investigating but has not confirmed a hack or any impact on user funds.
Key takeaways
- Scale: At least $5.57 billion moved out across three blockchains, with other estimates reaching $5.7–5.8 billion.
- Freezes: Tether says it froze more than 1.567 billion USDT, and Circle froze more than 800 million USDC.
- Suspected method: A Tornado Cash-funded address installed an EIP-7702 delegation on a Binance hot wallet about three minutes before the first drain.
- Response: Binance is investigating; co-founder CZ called it a hack and said he expects user funds to be fully covered.
- Markets: BNB fell about 7% to near $700, and bitcoin slipped to around $79,000.
Where the money went
According to Decrypt's tally based on Etherscan data, most of the assets left on Ethereum. The first transaction hit at 20:24 UTC on Oct 29.
- Ethereum: about $3.51 billion, including 167,464 ETH and 63 token transfers, among them 1.615 billion USDT.
- Bitcoin: about $1.44 billion, or 18,270 BTC.
- Tron: about $630 million.
On-chain researchers warn the total could climb further because the attacker is moving funds quickly. Some of the USDT has already been sold through decentralized exchanges.
Why EIP-7702 has security teams worried
EIP-7702 is an Ethereum feature that lets an ordinary wallet run delegated smart-contract code. Odysseas Lamtzidi, founder of Phylax Systems, noted that once a delegation is installed, that code can authorize later transfers without another signature from the wallet.
The key open question is how the attacker obtained the required signature. A signing-process failure, a leaked key or an insider compromise are all possible, but nothing has been officially confirmed.
If confirmed, CoinDesk and Decrypt say it would be the largest crypto hack on record, more than triple the roughly $1.5 billion Bybit heist in February 2025. Binance previously lost 7,000 BTC, then worth about $40 million, in a 2019 hack.
Stablecoin freezes: what is confirmed
Circle said it froze more than 800 million USDC in coordination with law enforcement. Minutes later, Tether CEO Paolo Ardoino said the company had frozen more than 1.567 billion USDT linked to the incident.
That brings total frozen stablecoins above $2.3 billion, per Cointelegraph. The ETH and BTC portions cannot be frozen in the same way.
What it means for crypto markets
Markets reacted quickly: BNB led losses, bitcoin fell about 2.6% over 24 hours and many altcoins dropped 5–10%. Privacy coin Monero edged higher on expectations that stolen funds may be routed through harder-to-trace channels.
- Bull case: Binance confirms it will cover users from its reserves, most stablecoins stay frozen and withdrawals run normally, easing selling pressure.
- Risk case: Losses grow, Binance pauses withdrawals, or the attacker dumps large amounts of ETH and BTC, which could push prices lower and trigger cascading liquidations in derivatives.
The backdrop is also fragile: more than $11 billion in bitcoin options expire on Oct 30, while fresh US GDP and PCE data have raised the odds of tighter Fed policy.
What to watch next
- Binance's official statement on losses, root cause and its SAFU fund.
- Deposit and withdrawal status on Binance over the next few hours.
- Attacker wallet flows: ETH/BTC sales, mixers or cross-chain bridges.
- Additional stablecoin freezes by Tether and Circle.
- Liquidation swings on our real-time liquidations page and the economic calendar.
Frequently Asked Questions
Has Binance confirmed it was hacked?
Not yet. Binance says it is investigating and has not confirmed any impact on user funds, although co-founder CZ said it appears to be a hack.
Are user funds safe?
CZ said he expects user funds to be fully covered, but that is not an official exchange statement. Users should follow Binance's official channels.
How can Tether and Circle freeze the funds?
USDT and USDC let their issuers block specific addresses from moving tokens. Native assets like ETH and BTC cannot be frozen this way.
*This content is for information only and is not financial advice.*
Tags: Binance, Hack, BNB, Stablecoins, Security
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