Binance Investigates Over $5 Billion in Outflows as Tether and Circle Freeze $2.39 Billion in Stablecoins
Binance faces outflows exceeding $5 billion amid an unconfirmed hack, with stablecoin issuers freezing $2.39 billion under law enforcement coordination. On-chain evidence points to a delegation exploit on a hot wallet, while market and compliance responses highlight the leverage of centralized stablecoin controls. The event tests Binance's reserve commitments and issuer enforcement reach without altering underlying token mechanics.
Binance stated its teams are investigating reports of a security issue without confirming loss amounts or methods. On-chain data tracked by Decrypt and Glassnode showed initial transfers including 167,464 ETH and 1.615 billion USDT at 20:24 UTC, with an EIP-7702 delegation submitted three minutes prior from a Tornado Cash-linked address. Binance founder Changpeng Zhao described the event as appearing to be a hack and indicated shareholder expectations for full coverage of user funds. Tether and Circle cited coordination with law enforcement for the freezes, which targeted specific receiving wallets.
Binance Security: At least 60 percent of frozen stablecoins returned to exchange control within 45 days via issuer reversal.
Sources (2)
- [1]Binance Official Statement(https://x.com/binance)
- [2]Decrypt On-Chain Analysis(https://decrypt.co)