Pierluigi Paganini
October 29, 2026
Binance is investigating a potential security incident after billions of dollars in cryptocurrency moved from wallets linked to the exchange on October 29. The transfers raised concerns about a possible hack, while Tether and Circle moved to freeze stablecoins linked to the suspicious activity. The full scope of the incident remains unclear, and the reported outflows shouldn’t automatically be treated as confirmed losses.
According to The Block, blockchain analyst Spreek identified approximately $3.55 billion in incoming transfers to an initially unidentified wallet.
“Onchain data flagged by analyst Spreek shows about $3.55 billion in incoming transfers to the unlabeled wallet, with nearly $900 million subsequently moved across other wallets.” The Block reports. “Conor Grogan, a senior director and product leader at Coinbase, says the amount is up to $5.8 billion.”
Coinbase executive Conor Grogan estimated that the total value of the movements could reach $5.8 billion.
These figures come from blockchain tracking and different estimates, so they don’t necessarily represent the amount stolen.
Binance acknowledged the reports and said its security team was investigating. The company had not publicly confirmed a breach in the initial reports, making it important to distinguish between suspicious transactions and a verified compromise.
“We are aware of reports of a potential security issue and we are actively investigating.” He wrote in a post on X. “Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information. Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information.”
This statement, reported by The Block, reflects the company’s position at the time. Binance also urged users to be cautious of unofficial messages and links, a relevant warning whenever a major security incident attracts public attention.
Blockchain records showed large transfers from Binance-linked hot wallets to a wallet that wasn’t previously identified as belonging to the exchange. Hot wallets hold cryptocurrency in systems connected to the internet, allowing exchanges to process withdrawals and other transactions quickly. Their online availability also makes their security controls particularly important.
The transfers involved Ethereum, stablecoins and other cryptocurrencies. Some funds were later moved to additional wallets, making it harder to track all the transactions.
Investigators must determine who initiated the transfers, whether they were authorized and whether an attacker gained control of the wallets. They also need to establish whether the funds belonged to customers or Binance itself.
Large transfers alone don’t prove a hack. However, unusual movements involving large amounts of cryptocurrency require immediate investigation.
One of the most significant developments was the response from the companies behind two major stablecoins, USDT and USDC. According to The Block and Forbes, Tether and Circle froze approximately $1.79 billion in stablecoins associated with the suspicious transfers in the initial reports.
The figures subsequently changed as the investigation developed. Tether CEO Paolo Ardoino later said the company had frozen more than $1.567 billion in USDT linked to a potential Binance exchange hack. These amounts reflect reported actions at different points in time and shouldn’t be combined without checking whether they refer to distinct assets and addresses.
The freezes demonstrate an important feature of centralized stablecoins: their issuers can restrict transfers from addresses they control through their token contracts. This can help contain suspected theft, but it doesn’t provide the same control over assets such as Ether or Bitcoin. Nor does freezing a balance guarantee that every transferred asset can be recovered.
The incident also highlights a practical tension in crypto security. Stablecoins offer the convenience of blockchain transfers, but their centralized issuers retain powers that can make a difference during an investigation.
Binance maintained that customer funds were safe, while co-founder Changpeng Zhao, widely known as CZ, said the activity appeared to be a hack. Zhao no longer manages Binance’s platform, but said he expected customers’ funds to be fully covered.
The company said its user funds were “completely safe.”
“Our teams are aware of reports of a potential security issue and are actively investigating. User funds are completely safe. Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information.” the company states. “Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information.”
That assurance is important, but it doesn’t replace a technical explanation of how the transfers occurred or independent confirmation of the final impact.
A security investigation must establish more than whether an exchange can cover a potential loss. It should determine how the activity was authorized, whether credentials or signing mechanisms were compromised, which systems were involved and whether the attacker retained any access.
For customers, the immediate priority is to avoid becoming a secondary victim. Attackers often exploit uncertainty around a major incident to distribute fake announcements, impersonate support staff and direct users to fraudulent websites. Users should rely on official Binance communication channels, avoid unexpected links and never disclose passwords, authentication codes or wallet recovery phrases in response to unsolicited messages.
Security teams should also watch for phishing emails that use the incident to demand urgent account verification. Attackers may exploit the situation to launch a separate scam.
The key lesson is that blockchain transparency does not guarantee operational security. Public ledgers show transactions, but they don’t reveal who authorized them, how attackers may have gained access or whether an exchange’s internal security controls failed.
As the investigation continues, it’s important to distinguish between reported transfers, confirmed theft and funds that can be recovered. The figures may change as analysts trace more wallets and stablecoin issuers take further action.
Follow me on Twitter: @securityaffairs and Facebook and Mastodon
(SecurityAffairs – hacking, Binance)
Hacking / October 29, 2026
