Reports of potential $5.7 billion Binance wallet drain spark crypto sell-off
Reports of a multi-billion dollar Binance wallet drain
Online sleuths are tracking the movement of funds from a Binance wallet to a new externally owned account. A crypto wallet is a digital container for assets. An externally owned account is a wallet controlled by a private key, not a company.
Blockchain tracker Arkham Intelligence reports the new account holds more than $5.7 billion in various cryptocurrencies. Binance, a crypto exchange which is a platform for trading digital assets, said its teams are aware of reports of a potential security issue and are investigating. The company said user funds are safe.
The reported drain is being described as a potential hack. Crypto prices moved lower on the news.
Key numbers from on-chain tracking
- Arkham reports the new account holds more than $5.7 billion in crypto.
- The holdings include nearly $1.5 billion in bitcoin and $900 million in ether.
- Roughly $1.4 billion in USDT and USDC combined is reported in the wallet. USDT and USDC are stablecoins, crypto tokens designed to hold a stable value pegged to the US dollar.
- An exploiter is reported to have borrowed 20,000 wrapped ETH, about $44 million, on lending protocol Aave using stolen USDT as collateral.
What Binance and founder said
Binance posted on X that its teams are aware of reports of a potential security issue and are actively investigating. Binance founder Changpeng Zhao said user funds are safe and said it looks like a hack on Binance, adding he does not manage Binance anymore but as a shareholder expects all user funds will be fully covered.
Stablecoin issuers freeze tokens
Tether CEO Paolo Ardoino said the firm had frozen over $1.57 billion worth of USDT. Circle CEO Jeremy Allaire said the firm froze over $800 million in USDC. Both said they were tracking the hack.
What is confirmed
- On-chain data shows funds moved from a Binance-linked wallet to a new address.
- Arkham Intelligence reports the new address holds more than $5.7 billion in crypto.
- Binance acknowledged reports of a potential security issue and said it is investigating.
- Binance founder said user funds are safe.
- Tether and Circle said they froze USDT and USDC amounts.
- Crypto prices fell on the news.
What is still unclear
Binance has not confirmed a hack. It is not clear if the funds moved are lost, stolen, or part of an internal transfer. The exact cause and responsibility have not been confirmed.
Market reaction on Oct 29
Bitcoin was reported down about 3% to around $78,800. Ether was down about 4%. BNB was lower by about 6.7% and Aave token was down about 8%.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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