Binance Probes Suspected Hot Wallet Hack as Tether Freezes 1.567B USDT
Between $2.5B and $3.5B left Binance hot wallets in about 40 minutes on October 29. Binance is investigating and has not confirmed a loss. CZ says user funds are safe; Tether froze more than 1.567B USDT and Circle about $823M USDC.
Between $2.5 billion and $3.5 billion left Binance hot wallets in roughly 40 minutes on October 29, and the exchange says it is investigating. Blockchain analysts flagged the activity between 20:24 and 21:04 UTC. Binance has not confirmed a breach or any actual loss. No official figure exists.
Estimates vary by source. One report puts the drain at roughly $3.3 billion from two Ethereum hot wallets; others range from $2.5 billion to over $3 billion. The assets included ETH, USDT and USDC.
The pattern raised flags. Receiving addresses were brand new, funds moved onward within minutes, and the activity was funded through Tornado Cash.
Binance addressed the reports in a post on X:
"Our teams are aware of reports of a potential security issue and are actively investigating."
Binance
Changpeng Zhao, Binance's founder and former CEO, went further. He wrote on X that it "does look like a hack on Binance" but that "user funds are safe." Speaking as a shareholder, he stressed that any losses would be fully covered. He posted around 21:15 UTC, roughly ten minutes after the flagged outflows ended.
Stablecoin freezes
Zhao cited about $971 million in USDT and $823 million in USDC frozen. Tether CEO Paolo Ardoino later said Tether "froze more than 1.567 billion USDT related to a potential Binance exchange hack." Combined estimates of the freeze run from $1.8 billion to $2.4 billion.
The net had holes. About $700 million in USDT and ETH reportedly moved before blacklisting or outside its reach.
An issuer cannot freeze ETH.
Market reaction
Liquidations hit $627.7 million, mostly longs. BTC and ETH fell 2% to 4% within the hour. BNB dropped as much as 6% in one report; another cited up to 9%.
Ethena also flagged a potential security incident tied to Binance and said its collateral sits off-exchange. No further details were available.
What it means
Zhao's pledge is a statement of intent, not proof of solvency. The test is whether the investigation confirms customer balances were untouched. Until Binance publishes a loss figure and a root cause, the range of estimates stays wide.
The freezes also show how much control centralized issuers hold over assets marketed as digital dollars. Tether and Circle acted within about an hour. ETH, by design, could not be touched.
The episode lands days after Binance filed for a Brazil crypto license, a license that is still pending.
