Binance is investigating a potential multibillion-dollar security breach involving one of its Ethereum wallets, after suspicious transfers prompted stablecoin issuers Tether and Circle to reportedly freeze nearly $1.8 billion in assets.
A Binance spokesperson told Cointelegraph on Thursday that the exchange was investigating reports of a potential security issue but had not confirmed any impact on user funds. The spokesperson said its security teams were reviewing the activity and would provide updates once more information was verified.
Binance co-founder Changpeng Zhao said the activity appeared to be a hack, adding that Tether and Circle had frozen approximately $971 million and $823 million, respectively. Zhao, who no longer manages the exchange, said he expected all user funds to be fully covered.
The concerns were first raised by blockchain researcher Spreek, who posted on X that assets from a Binance-linked Ethereum wallet had been transferred to a newly created address through a contract call allegedly funded by Tornado Cash. Spreek later reported that wallets connected to the transfers had begun selling Tether (USDT) through decentralized exchanges.
“Protecting the industry and our partners is our main priority,” Ardoino wrote.
Tether and Circle freeze over $2.36B amid suspected Binance hack
Stablecoin issuers Tether and Circle, the two largest stablecoin issuers by market cap, both announced Thursday afternoon on X that they had frozen more than $2.36 billion in tokens linked to the suspected Binance hack.
Circle CEO Jeremy Allaire said at 5:18 p.m. Eastern that the company had frozen more than $800 million in USDC in coordination with law enforcement and would continue supporting the investigation.
A few minutes later, Tether CEO Paolo Ardoino announced that the company had frozen more than $1.567 billion in USDT linked to the potential exploit.
“Protecting the industry and our partners is our main priority,” Ardoino wrote.
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