Binance hack: Up to $5.8 billion in crypto reportedly stolen as Tether and Circle freeze funds amid investigation
Daniel Levi
Posted On October 29, 2026
Binance, the world’s largest cryptocurrency exchange, is investigating a suspected hack that may have exposed more than $5.6 billion in digital assets, potentially the biggest cryptocurrency theft in history. The suspected breach triggered a scramble among blockchain investigators and stablecoin issuers Thursday, as billions of dollars moved out of wallets linked to the exchange.
The Wall Street Journal reported Thursday that Binance founder and largest shareholder Changpeng Zhao acknowledged the possibility of a major hack, even as the exchange sought to reassure customers that their funds remained safe.
“Hackers appeared to have plundered at least $1.7 billion Thursday from Binance in what would be the largest-ever cryptocurrency heist,” The Wall Street Journal reported.
“It does look like a hack on Binance,” Changpeng Zhao, founder of Binance, the world’s largest crypto exchange, said in a post on X. “User funds are safe.”
User funds are safe!
It does look like a hack on Binance. Appreciate the quick freeze from Tether (~$971m) and Circle (~$823m).
I don’t manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered.
— CZ 🔶 BNB (@cz_binance) October 29, 2026
The scale of the suspected theft remains uncertain. Blockchain security researcher Taylor Monahan estimated losses could exceed $2 billion and potentially reach $5.5 billion. Other analysts placed the figure above $5.5 billion, raising the possibility that the incident could dwarf every previous cryptocurrency exchange hack.
Billions transferred from Binance hot wallets as investigators probe suspected breach
Blockchain transaction data has revealed a series of massive cryptocurrency transfers from Binance-controlled hot wallets to a newly created Ethereum address, raising concerns about a potentially unprecedented security breach.
According to another report from BleepingComputer, citing blockchain analysis shared by crypto journalist StarPlatinum, a Binance hot wallet identified as “Binance 14” transferred approximately $2.53 billion across 64 cryptocurrency tokens. Just 24 seconds later, a second Binance wallet reportedly transferred another $174.4 million to the same destination.
A subsequent update identified an additional transfer of 780 million USDC from a third Binance hot wallet, bringing the reported total to approximately $3.48 billion.
Separately, blockchain intelligence firm Arkham Intelligence identified 55 cryptocurrency addresses linked to the suspected incident, with combined holdings valued at about $5.78 billion.
The figures represent different measures of the suspicious activity and should not be added together. Binance has confirmed it is investigating a potential security issue but has not established whether the transfers were unauthorized or disclosed a verified loss amount.
Binance hack: Reported losses exceed $5.6 billion
The scale of the suspected breach may be significantly larger than initially reported. According to figures shared by crypto news outlet Watcher Guru, more than $5.6 billion in cryptocurrencies has reportedly been linked to the Binance incident.
The reported breakdown includes:
- Bitcoin (BTC): $1.45 billion
- Ethereum (ETH): $875 million
- Tron (TRX): $234 million
- Tether (USDT): $1.57 billion
- USD Coin (USDC): $823 million
- Tether Gold (XAUT): $50 million
- Wrapped Beacon ETH (WBETH): $75 million
- Ripple USD (RLUSD): $88.5 million
- Other cryptocurrencies: $447.5 million
Together, these figures total approximately $5.61 billion, potentially making the incident the largest cryptocurrency exchange hack on record if the losses are confirmed.
However, the figures remain preliminary. Binance has not independently confirmed the total value of stolen assets, and blockchain wallet balances do not necessarily represent final unrecoverable losses.
The incident has also prompted Tether and Circle to freeze billions of dollars in stablecoins associated with the suspicious transactions as investigators work to determine the full extent of the breach.
The numbers are staggering, but there is an important distinction: Binance has not confirmed the amount stolen, and investigators are still working to establish how much cryptocurrency was actually taken. Estimates based on suspicious wallet transfers do not necessarily represent final financial losses.
Binance acknowledged reports of a possible security incident and said its security teams were investigating.
The exchange’s response came as blockchain analysts tracked unusual transactions involving wallets associated with Binance. The movement of such large sums raised immediate concerns about whether attackers had accessed the exchange’s hot wallets, which store cryptocurrency online to facilitate withdrawals and trading.
Zhao, who stepped down as Binance CEO in 2023 but remains a major shareholder, said the incident appeared to be a hack. He maintained that customer funds were safe and said users would be covered.
His reassurance came amid growing scrutiny of the exchange’s security and its ability to absorb a potentially historic loss.
Tether and Circle freeze billions as Binance faces potentially record-breaking crypto theft
One of the most significant developments came from stablecoin issuers Tether and Circle, which moved to freeze cryptocurrency connected to the suspicious transfers.
According to The Wall Street Journal, the two companies reportedly froze approximately $1.7 billion in assets linked to the suspected theft. The intervention could prevent attackers from moving or cashing out a substantial portion of the funds.
The freezes highlight a critical difference between stablecoins and cryptocurrencies such as Bitcoin. Issuers of centralized stablecoins can block transfers involving specific wallets, giving them an emergency tool when they identify stolen assets.
Still, freezing assets does not automatically mean the money has been recovered. Investigators must determine who controls the wallets, trace the remaining funds, and establish what happened before they can confirm any recovery.
If the highest estimates prove accurate, the Binance incident would surpass the February 2025 Bybit hack, when North Korea-linked attackers stole approximately $1.5 billion in cryptocurrency.
That attack shocked the digital asset industry and reminded everyone that even major exchanges with substantial security budgets remain vulnerable to sophisticated theft.
Binance now faces an even bigger test.
The exchange maintains an emergency insurance reserve known as the Secure Asset Fund for Users, or SAFU, which The Wall Street Journal reported stood at approximately $1.2 billion. Whether that reserve would be sufficient to cover the damage depends on the final loss amount, asset recoveries, and Binance’s broader financial resources.
The reported incident has raised questions about the security of cryptocurrency exchanges that collectively hold billions of dollars in customer assets. A single compromised wallet or security failure can expose enormous sums in minutes.
Binance.US, the exchange’s separate American platform, said it was unaffected by the suspected incident.
For now, the biggest unanswered questions concern how much was stolen, how attackers may have accessed the funds, and whether Binance can recover the missing assets.
The outcome could determine whether Thursday’s suspected breach becomes the largest cryptocurrency theft ever recorded or a narrower incident than the initial figures suggest.
Update: October 29, 2026, 6:28 p.m. ET
Stablecoin issuers Tether and Circle have frozen more than $2.38 billion in cryptocurrency linked to the suspected Binance hack, Reuters reported Thursday evening. Tether froze nearly $1.57 billion in USDT, while Circle froze more than $800 million in USDC. Binance confirmed it is actively investigating a potential security incident and maintained that customer funds remain safe. Binance founder Changpeng Zhao said the incident “looked like a hack.” Separately, Binance co-founder Yi He said Ripple had frozen roughly $200 million in assets. The exchange has yet to confirm the total amount stolen or disclose how the suspected breach occurred.
This is a developing story. Details may change as Binance and blockchain investigators release additional findings.
Source: The Wall Street Journal, October 29, 2026, “Binance Founder Says Exchange May Be Victim of Biggest-Ever Crypto Heist.”
