Binance Investigates Potential Security Incident After Large Hot Wallet Exits Binance co-founder Changfeng Zhao (CZ) said large outflows from the exchange's wallets "look like a hack," while stating that user funds are safe. He acknowledged a bind and circle that quickly froze about $971 million in USDT and $823 million in USDC (about $1.8 billion in total; later updates put the bond freeze higher, over $1.5 billion). As a shareholder, CZ said it expects all user funds to be fully covered. Binance has confirmed that it is actively investigating reports of a possible security issue. The exchange said it has not confirmed any impact on user funds (further stating they are completely safe) and will provide updates through official channels. Users have been warned to avoid scams and unofficial requests.⁠ Online followers have reported transfers of billions of dollars from Binance-linked hot wallets (estimates range from ~$2.5-$3.5B+ across networks), with several addresses flagged as linked to the exploit. Kishira CEO Paolo Arduino confirmed the freezing of more than $1.567 billion in USDT related to the event.

Binance Investigates Potential Security Incident After Large Hot Wallet Exits Binance co-founder Changfeng Zhao (CZ) said large outflows from the exchange's wallets "look like a hack," while stating that user funds are safe. He acknowledged a bind and circle that quickly froze about $971 million in USDT and $823 million in USDC (about $1.8 billion in total; later updates put the bond freeze higher, over $1.5 billion). As a shareholder, CZ said it expects all user funds to be fully covered. Binance has confirmed that it is actively investigating reports of a possible security issue. The exchange said it has not confirmed any impact on user funds (further stating they are completely safe) and will provide updates through official channels. Users have been warned to avoid scams and unofficial requests.⁠ Online followers have reported transfers of billions of dollars from Binance-linked hot wallets (estimates range from ~$2.5-$3.5B+ across networks), with several addresses flagged as linked to the exploit. Kishira CEO Paolo Arduino confirmed the freezing of more than $1.567 billion in USDT related to the event.