Binance Probes Suspected Record Hack as Billions Leave Hot Wallets

Binance said Thursday it is investigating a potential security incident after billions of dollars in crypto left wallets linked to the exchange within the space of an hour, in what would be the largest theft in the industry’s history if confirmed. On-chain tallies put the outflows at no less than $5. 57 billion across three networks: roughly $3.

51 billion on Ethereum, about $1. 44 billion in Bitcoin (18,270 BTC) and around $630 million on Tron. Analysts first noticed unusual movement from Binance hot wallets at about 20:24 UTC on October 29, and the main transfers were over by around 21:04.

A wallet labelled Binance 14 sent about 167,464 ETH, roughly $1. 6 billion in USDT and more than 60 other tokens to a fresh address in a single transaction. Around three minutes earlier, an address funded through Tornado Cash had submitted a delegation authorisation for that hot wallet using the EIP-7702 standard.

How the attacker obtained the required signature is still unknown. Observers also noted that the receiving addresses were brand new and that funds were pushed onward within minutes. Binance has stopped short of calling it a hack.

A spokesperson said its security teams are reviewing all relevant information urgently, and that updates will come through official channels once details are verified. The company warned users to stay alert for scams. Former chief executive Changpeng Zhao was more direct.

Writing on X around 23:15 local time, he said user funds were safe and that it did appear the exchange had been hacked. He added that, as a shareholder rather than an operator, he expects customers to be made whole. Stablecoin issuers moved quickly to limit the damage.

Tether chief executive Paolo Ardoino said the company froze more than 1. 567 billion USDT linked to the incident. Circle’s chief executive, Jeremy Allaire, said the firm was tracking the situation, and reports later put combined freezes by the two issuers at roughly $1.

8 billion to $2. 4 billion. One outlet also reported that Binance had paused withdrawals, though that was not clearly confirmed elsewhere.

Markets reacted. BNB, the exchange’s native token, dropped as much as 9% on the reports, while Ethena said the collateral behind its products is held off-exchange and was not directly affected. If the figures hold, the scale would dwarf previous losses.

The biggest exchange breach to date was the roughly $1. 5 billion Bybit theft in February 2025, which the FBI blamed on North Korean hackers. Binance’s own worst incident, in 2019, cost it 7,000 BTC, about $40 million at the time.

The latest estimate is more than triple the Bybit loss. Caution is warranted on the numbers. Estimates have shifted through the evening, starting near $2 billion and rising past $5.

5 billion, and Binance has yet to publish its own accounting. Until investigators establish how the transfers were authorised, the outflows are best treated as suspicious activity rather than a proven breach. Separately, prediction market Polymarket suspended trading after a third-party breach caused user losses, adding to nervousness across the sector.