Binance is investigating a suspected security breach after approximately USD 5.57 billion left exchange-linked wallets across three blockchains. The reported outflows span Ethereum, Bitcoin and Tron, raising concerns about a potential major crypto security incident. Tether and Circle responded by freezing approximately USD 1.8 billion in stablecoins linked to the main receiving wallet.
The on-chain estimate includes USD 3.51 billion on Ethereum, USD 1.44 billion in Bitcoin and USD 630 million on Tron. Binance has not confirmed a hack or any loss of customer funds, leaving the nature of the transfers unclear. The exchange said it was aware of a “potential security issue” and had launched an urgent investigation.
Stablecoin issuers moved quickly after investigators identified the receiving wallet. Tether froze approximately 975.1 million USDT, while Circle blocked around 823 million USDC. Their combined action restricted access to roughly USD 1.8 billion linked to the suspected incident.
Circle CEO Jeremy Allaire confirmed the response through a public statement on X. He said, “In coordination with law enforcement, we have frozen more than 800M USDC associated with the incident.” Both companies can restrict specific wallet addresses from transferring their stablecoins.
The initial Ethereum transfer included 167,464 ETH and dozens of token movements to a newly created address. Investigators also identified an earlier wallet delegation involving Ethereum’s EIP-7702 feature. This technology allows regular wallets to execute delegated smart contract code.
However, the method used to obtain the required wallet authorization remains unknown. Binance has not confirmed whether attackers accessed its hot wallets or exploited another security weakness.
The suspected Binance crypto outflow coincided with pressure across major digital assets. Bitcoin slipped below USD 79,000, while BNB dropped approximately 7% to around USD 699. Monero gained roughly 6%, attracting attention amid heightened security concerns.
If investigators confirm the reported USD 5.57 billion theft, the incident could surpass previous crypto exchange hacks. For now, the on-chain figure represents estimated wallet outflows, not confirmed customer losses.
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