Binance Probes Suspected Hack as Suspicious Outflows Could Reach $5.8 Billion

Onchain data indicates that around $3.55 billion was transferred into an unlabeled wallet, after which nearly $900 million was moved onward to other wallets.

Binance, the world’s largest cryptocurrency exchange, appears to have been hit by a major hack.

Data flagged by analyst Spreek shows approximately $3.55 billion in incoming transfers to the unlabeled wallet, with nearly $900 million later transferred among other wallets. Conor Grogan, a senior director and product leader at Coinbase, put the amount as high as $5.8 billion.

Binance has not publicly confirmed a security breach. However, co-founder and Chief Customer Service Officer Yi He said the company is actively looking into the matter.

“We are aware of reports of a potential security issue and we are actively investigating,” He wrote in a post on X. “Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information. Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information.”

Former CEO Changpeng Zhao said users’ funds were safe and that he expected them to be fully covered. He also praised Tether and Circle for moving quickly to freeze the funds.

“I don't manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered,” Zhao wrote on X.

Onchain data indicated that Tether and Circle had frozen a combined $1.79 billion in USDT and USDC held in a wallet that had received billions of dollars in transfers from Binance hot wallets. Later, Tether CEO Paolo Ardoino said the stablecoin company had frozen more than 1.567 billion USDT.

“Protecting the industry and our partners is our main priority,” Ardoino said. “Stay safe everyone.”

Blockaid said it was investigating roughly $3.3 billion in suspicious outflows from Binance hot wallets across Ethereum, Arbitrum, and Avalanche.

At the time of publication, the BNB token was down more than 5.5%.

This is a developing story.