Binance investigates suspected wallet hack after $1.8 billion freeze

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Binance wallet hack investigation

Highlights

Binance is investigating potential unauthorized transfers after stablecoin issuers Tether and Circle froze approximately $971 million and $823 million, totaling nearly $1.8 billion.
Blockchain researcher Spreek reported that assets from a Binance-linked Ethereum wallet were moved via a contract funded by Tornado Cash, with subsequent selling of USDT through decentralized exchanges.
The incident emphasizes operational, compliance, and tracing risks for large crypto platforms, as stablecoin issuers and blockchain analytics quickly acted to contain possible illicit flows.

Wallet activity triggers security review

As reported by Cointelegraph, Binance says it is investigating reports of a potential security issue involving one of its Ethereum wallets after unusual transfers were detected. A spokesperson told the outlet on Thursday that the exchange's security teams are reviewing the activity and will provide updates once more information is verified.

The spokesperson says Binance has not confirmed any effect on customer balances. The review follows reports that stablecoin issuers Tether and Circle froze about $971 million and $823 million respectively, for a combined amount close to $1.8 billion.

Binance co-founder Changpeng Zhao says the activity appears to be a hack, although he no longer manages the exchange. He adds that he expects all user funds to be fully covered.

Crypto market risks and tracing concerns

The initial concerns were raised by blockchain researcher Spreek, who posted on X that assets from a Binance-linked Ethereum wallet were transferred to a newly created address through a contract call allegedly funded by Tornado Cash. Spreek later says wallets connected to the transfers began selling Tether, or USDT, through decentralized exchanges.

The episode underscores the operational and compliance risks facing large crypto platforms when wallet movements quickly spread across onchain markets. It also highlights the role of blockchain analytics and stablecoin issuers in tracing and containing suspected illicit flows linked to major exchanges.

In our earlier article on the surge in cybersecurity funding, we noted that investor interest stayed strong as bigger late-stage rounds pushed total capital raised higher despite fewer overall deals. We highlighted how AI-driven and identity security firms attracted the largest checks and how major acquisitions signaled an industry racing to strengthen fraud prevention and risk controls.

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