️About $3.3 billion in crypto left Binance-labeled hot wallets on Ethereum in about 40 minutes, in what Etherscan labeled a "Binance Hot Wallet Exploiter" event, though estimates range as high as $5.8 billion, depending on which networks are counted.
The chain records show that the suspected attacker, partially funded by Tornado Cash, used the EIP-7702 expedition to take over the wallet titled Binance 14, then swiped 167,464 ETH, about $1.6 billion in USDT and more than 60 other tokens, followed by a second hot wallet of 780 million USDC.
Tether and Circle have frozen roughly $1.8 billion of the stolen stablecoins, while Binance says it's investigating a "potential security issue" and has not confirmed any impact on user funds, and former CEO CZ said the outflows "look like a hack." The root cause remains unconfirmed, and the incident has already hit the markets, with Bitcoin falling below $78,500, Ethereum below $2,250, and BNB down 9%.