Binance said it is investigating a possible security incident tied to one of its Ethereum-linked wallets after suspicious transfers triggered a large-scale asset freeze by stablecoin issuers. According to Cointelegraph, a Binance spokesperson said the exchange had not confirmed any impact on user funds and that its security team was still reviewing the activity before issuing further updates.
Binance co-founder Changpeng Zhao said the activity appeared to be a hack. He added that Tether and Circle had frozen about $971 million and $823 million, respectively, bringing the total to nearly $1.8 billion. Zhao, who no longer manages the exchange, said he expected all user funds to be fully covered.
The initial warning came from blockchain researcher Spreek, who said on X that assets from a Binance-linked Ethereum wallet were moved to a newly created address through a contract call allegedly funded by Tornado Cash. Spreek later said wallets tied to the transfers had started selling Tether’s USDT on decentralized exchanges.
Binance is investigating a possible multibillion-dollar security incident involving one of its Ethereum-linked wallets after suspicious transfers led stablecoin issuers Tether and Circle to reportedly freeze nearly $1.8 billion in assets.
Binance says review is ongoing
A Binance spokesperson told Cointelegraph on Thursday that the exchange was looking into reports of a potential security issue, but had not confirmed any effect on user funds. The spokesperson said Binance security teams were reviewing the activity and would share updates after more information had been verified.
Zhao says the activity looks like a hack
Binance co-founder Changpeng Zhao said the transfers appeared to be the result of a hack. He said Tether had frozen about $971 million and Circle had frozen about $823 million.
Zhao, who no longer manages Binance, also said he expected all user funds to be fully covered.
Researcher Spreek first flagged the transfers
Concerns were first raised by blockchain researcher Spreek, who wrote on X that assets from a Binance-linked Ethereum wallet had been moved to a newly created address through a contract call allegedly funded by Tornado Cash.
Spreek later said wallets connected to the transfers had started selling Tether (USDT) through decentralized exchanges.
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