Binance Drained of $5.5 Billion in Suspected Hack, Tether and Circle Freeze $1.8 Billion

An on-chain accounting indicates a suspected drain of $5.57 billion from wallets associated with Binance across three distinct blockchains.

Concurrently, Tether and Circle have frozen a combined $1.8 billion.

The funds departed Binance-linked wallets spanning Ethereum, Bitcoin, and Tron. This potential incident, if confirmed as a hack, would represent the largest cryptocurrency breach recorded.

Binance has stated it is investigating the "potential security issue" and confirmed, "We have not confirmed any impact to user funds."

The movement included $3.51 billion on Ethereum, $1.44 billion in 18,270 Bitcoin, and $630 million on Tron.

The initial Ethereum transaction, occurring at 20:24 UTC, involved 167,464 ETH plus 63 token transfers to a new address, which included 1.615 billion USDT.

This transfer followed a delegation submitted to a Binance hot wallet using EIP-7702, an Ethereum feature allowing standard wallets to execute smart-contract code.

Tether subsequently froze 975.1 million USDT in the main receiving wallet, while Circle froze 823 million USDC at 21:04 UTC. Circle CEO Jeremy Allaire stated, "In coordination with law enforcement, we have frozen more than 800M USDC associated with the incident and will continue supporting the investigation."

Market participants observed corresponding shifts in asset prices; Bitcoin dropped below $79,000, BNB declined by approximately 7%, and Monero increased by about 6%.

This event highlights the systemic risk associated with centralized exchange infrastructure, where the integrity of hot wallets, which process customer withdrawals, is critical to maintaining trust across DeFi and related protocols.