Binance investigates possible hack after billions moved from crypto wallets
Cryptocurrency exchange Binance is investigating a possible security breach after billions of dollars in digital assets were moved from its wallets. The issuers of two major cryptocurrencies say they have frozen more than $2.3 billion linked to the incident.
“Our teams are aware of reports of a potential security issue and are actively investigating,” Binance said in a social media post on Thursday. “User funds are completely safe.”
“Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information,” Binance added. “Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information.”
Changpeng Zhao, Binance’s founder and former CEO, said it appeared the exchange had been hacked. He said he expected all user funds to be fully covered.
Tether CEO Paolo Ardoino said the company had frozen more than $1.567 billion in USDT related to a potential Binance hack. Circle CEO Jeremy Allaire said his company had frozen more than $800 million in USDC in coordination with law enforcement.
USDT and USDC are stablecoins, digital currencies designed to maintain a value of about $1 each. Their issuers can freeze tokens, preventing them from being transferred.
More than $2 billion in cryptocurrencies left Binance’s online wallets on Thursday for an address created hours earlier, Yahoo Finance reported, citing blockchain data. The outlet said the transfers included ether and USDT, and that some of the funds were subsequently moved to another address.
The transfers were initiated by an address funded through Tornado Cash, a service that obscures the origins of cryptocurrency transactions, according to the report. It was not immediately clear who controlled the receiving addresses.
