Trump’s crypto firm joins Tether, Circle, and Ripple in $2.6 billion stablecoin freeze as Binance hack outflows near $6 billion
Stablecoin issuers have frozen over $2.6 billion in digital assets linked to a suspected Binance security breach involving nearly $6 billion.
Stablecoin issuers, including Tether, Circle, Ripple, and World Liberty Financial, have frozen more than $2.6 billion in digital assets linked to a suspected Binance security breach involving nearly $6 billion. On Oct. 29, Tether CEO Paolo Ardoino confirmed the freeze of over $1.567 billion in USDT, while Circle froze approximately $823 million in USDC.
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Binance hack outflows approach $6 billion
Crypto research firm Kairos Research estimated that about $5.7 billion left Binance hot wallets. The suspicious activity began at 4:20 p.m. ET when an external address used Ethereum's EIP-7702 account-delegation mechanism to attach executable code to a Binance hot wallet.
Three minutes later, a single transaction transferred 63 tokens, including 1.6 billion USDT and 167,000 ETH. Another Binance hot wallet transferred 28,000 ETH to the same destination, while 18,270 BTC and 613 million USDT on Tron moved to new addresses around the same time.
Despite freezes by stablecoin issuers, the attacker kept moving assets, including another 200 million USDT transferred through the compromised Ethereum wallet. Before Tether intervened, the suspected attacker deposited $60 million in USDT into Aave and borrowed about 19,800 ETH, valued at $45 million.
Aave's contracts are unaffected, and positions remain overcollateralized. As a precaution, all DAO-operated markets across V3 and V4 have been frozen.
Exchange investigation continues
Binance has not yet confirmed the total amount potentially compromised, leaving the scale of the suspected breach unresolved. The exchange confirmed that its security teams were investigating the suspicious activity and reviewing available information.
Despite the measures, approximately $850 million in ETH continued moving between newly created wallets, while 17,270 BTC remained untouched. Binance assured customers their assets were safe and promised further updates once it verified the circumstances.
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