Binance said it is investigating a potential security breach after suspicious wallet transfers, while co-founder CZ reported nearly $1.8 billion in frozen stablecoins.
Binance is investigating a potential multibillion-dollar security breach involving one of its Ethereum wallets, after suspicious transfers prompted stablecoin issuers Tether and Circle to reportedly freeze nearly $1.8 billion in assets.
A Binance spokesperson told Cointelegraph on Thursday that the exchange was investigating reports of a potential security issue but had not confirmed any impact on user funds. The spokesperson said its security teams were reviewing the activity and would provide updates once more information was verified.
Binance co-founder Changpeng Zhao said the activity appeared to be a hack, adding that Tether and Circle had frozen approximately $971 million and $823 million, respectively. Zhao, who no longer manages the exchange, said he expected all user funds to be fully covered.
The concerns were first raised by blockchain researcher Spreek, who posted on X that assets from a Binance-linked Ethereum wallet had been transferred to a newly created address through a contract call allegedly funded by Tornado Cash. Spreek later reported that wallets connected to the transfers had begun selling Tether (USDT) through decentralized exchanges.
Magazine: Private, fast USDT is coming to Bitcoin. Can it compete with Ethereum and Tron?
Subscribe to daily byte-sized crypto news from Cointelegraph
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
