Binance is probing a potential multibillion-dollar security breach after suspicious transfers from one of its Ethereum wallets triggered a response from stablecoin issuers Tether and Circle. The two companies froze nearly $1.8 billion in assets linked to the incident. A Binance spokesperson confirmed the investigation but stopped short of confirming any impact on user funds, stating that security teams were reviewing the activity.
Binance co-founder Changpeng Zhao, who no longer manages the exchange, described the activity as a hack. He noted that Tether and Circle had frozen approximately $971 million and $823 million in assets, respectively. Zhao expressed confidence that all user funds would be fully covered.
The concerns were first flagged by blockchain researcher Spreek, who observed transfers from a Binance-linked Ethereum wallet to a newly created address. The transfers were allegedly funded by Tornado Cash. Spreek later reported that wallets connected to the transfers had begun selling Tether (USDT) through decentralized exchanges.
Tether and Circle, the two largest stablecoin issuers by market cap, announced they had frozen over $2.36 billion in tokens linked to the suspected hack. Circle CEO Jeremy Allaire stated that the company had frozen more than $800 million in USDC in coordination with law enforcement. Tether CEO Paolo Ardoino announced the freezing of over $1.567 billion in USDT, emphasizing the company's priority to protect the industry and its partners.