Binance Investigates Suspected Multi-Billion Hack as Tether, Circle Freeze Funds

Published October 30, 2026, 03:10 AM PKT. Based on Binance's official statement on October 29, 2026 (primary source for the investigation and the user funds assurance), statements by Tether chief executive Paolo Ardoino and Circle chief executive Jeremy Allaire (primary sources for the freezes), and reporting by CoinDesk, FXStreet and The Crypto Guide (secondary sources). This is a developing story, and the figures below are attributed estimates and company statements, not a confirmed loss total from Binance.

Binance said on October 29, 2026, that it is investigating reports of a potential security issue after on-chain researchers flagged billions of dollars in crypto moving from a Binance wallet into a brand new address. The exchange has not confirmed a hack, a loss figure or a cause. In its official statement on X, Binance said its teams were aware of the reports and actively investigating, that user funds are completely safe, and that it would share updates through official channels once it has verified information. Binance also warned users to stay alert for scams and not to trust unofficial links, messages or requests for account information.

The wallet drain trackers flagged

On-chain researcher Spreek flagged the movement at about 4:32 p.m. Eastern on October 29, calling it an unconfirmed but possibly massive Binance hack, The Crypto Guide reported. According to that report, a Binance wallet was drained into a new address, with the contract call funded through Tornado Cash, a tool used to hide where crypto came from. FXStreet reported that funds left the exchange's hot wallets across five blockchain networks to unconfirmed addresses, and put the early estimate at $2.77 billion. CoinDesk first reported that the receiving address held more than $2 billion in coins, including ether, USDT and USDC, and later updated its report to say the account held more than $5.7 billion of various cryptos, according to Arkham data, including nearly $1.5 billion in bitcoin and $900 million in ether, plus roughly $1.4 billion in USDT and USDC combined. The gap between the $2.77 billion and $5.7 billion figures shows how fast early on-chain estimates moved, and neither figure is a Binance number. CoinDesk described the incident in its headline as the largest crypto hack to date, but Binance itself has used no such description and has not confirmed that a hack took place.

What Binance and CZ said

Binance co-founder Yi He posted at 5:17 p.m. Eastern that the company knew of the reports and was investigating, The Crypto Guide reported. At 5:29 p.m. Eastern, Binance's official X account posted a nearly identical message, adding that user funds are completely safe. Binance founder and former chief executive Changpeng Zhao, who says he no longer manages Binance, posted at 5:15 p.m. Eastern that it does look like a hack on Binance, while also saying user funds are safe. In his post, Zhao said that as a shareholder he expects all user funds will be fully covered. That expectation is Zhao's personal statement, not a Binance reimbursement announcement, and Binance has published no payment timetable, no reimbursement plan and no statement on whether deposits or withdrawals are affected.

The $2.37 billion in stablecoin freezes

The clearest confirmed actions so far came from the two largest stablecoin issuers. Tether chief executive Paolo Ardoino said Tether froze more than $1.567 billion in USDT tied to what he called a potential hack of the exchange. Circle chief executive Jeremy Allaire said Circle froze more than $800 million in USDC associated with the incident, in coordination with law enforcement. Together, the two freezes exceed $2.37 billion. Earlier in the evening, Zhao and Yi He had thanked Tether and Circle for freezing about $971 million and about $823 million respectively, The Crypto Guide reported, and the Tether figure was later raised to more than $1.567 billion. Neither issuer published an address by address breakdown. A freeze stops whoever controls a frozen address from moving those stablecoins, but it does not freeze other coins held at the same address, such as ether, and it does not by itself show that assets have been returned to Binance or its customers.

The market reaction

Crypto prices slid as the reports spread. CoinDesk reported bitcoin at $79,001.73, down 2% in the last hour to $78,800, ether at $2,274.77, down 3%, and BNB, the token tied to Binance, at $706.63, down 6%. FXStreet reported bitcoin and ether dropping below $80,000 and $2,300 respectively, and said the move triggered roughly $600 million in liquidations within one hour, according to Coinglass data. Those are market moves in the first hours of an unconfirmed incident, not a verdict on Binance's solvency, and prices often move again as verified facts arrive.

What is still not known

Binance has not said whether the incident was a hack, how the wallet was emptied, how much left Binance, or whether any customer funds are affected beyond its assurance that user funds are completely safe. No statement reviewed for this article mentions Binance.US, which is run by a separate company, so this article makes no claim about Binance.US customers. The immediate risk for readers is not only the incident itself but the scams that follow it. Binance warned users to distrust unofficial links and messages, and no legitimate Binance representative will ask for a password, two-factor code or seed phrase to verify an account or protect funds. Anyone offering to recover lost funds for a fee is running a recovery scam. This article will be updated as Binance, Tether or Circle publish verified information.

This article is news reporting and is not investment advice.

Sources

• Binance, official statement on X, October 29, 2026, primary source for the investigation into reports of a potential security issue, the assurance that user funds are completely safe, and the warning about scams
• Tether chief executive Paolo Ardoino, statement on X, October 29, 2026, primary source for the freeze of more than $1.567 billion USDT tied to the potential hack
• Circle chief executive Jeremy Allaire, statement on X, October 29, 2026, primary source for the freeze of more than $800 million USDC associated with the incident, in coordination with law enforcement
• CoinDesk, Binance loses $5.7 billion in largest crypto hack to date (October 29, 2026, published 21:12 UTC, updated 21:54 UTC), secondary source for the receiving address figures from Arkham data, the Binance and CZ statements, the Tether and Circle freeze figures, and the bitcoin, ether and BNB prices
• FXStreet, Breaking: Binance potentially hacked for $2.77 billion (October 29, 2026, 21:38 UTC), secondary source for the five chain hot wallet movement, the $2.77 billion early estimate, the Binance statement text, and the roughly $600 million in one hour liquidations from Coinglass
• The Crypto Guide, Binance Security Issue: Tether, Circle Freeze Funds. What We Know (October 29, 2026), secondary source for the Spreek flag at 4:32 p.m. Eastern, the Tornado Cash funding detail, the Yi He posts at 5:17 p.m. and 5:26 p.m. Eastern, the Binance official post at 5:29 p.m. Eastern, the earlier $971 million and $823 million freeze figures, and the Binance.US separation note