Editor’s note: This article was corrected on October 29, 2026. An earlier version included an unsupported claim about AI-angle rumors circulating about the incident, stated that Binance was the only exchange confirmed to be affected, and carried a paragraph linking the incident to a broader Bitcoin price decline and liquidations. Those claims have been removed. Reported transfer figures, tracked-wallet holdings and stablecoin freeze figures are now stated in separate scopes with their sources named. The article’s original web address, which carried the removed claim in its URL, has been replaced.
Binance is investigating a potential security breach involving a large movement of digital assets from its systems. The incident, which began on October 29, 2026, prompted the exchange to pause withdrawals on multiple networks as a precaution, according to TechCrunch, which quoted Binance spokesperson Ross O’Leary. If the suspected theft is confirmed, it would be the largest cryptocurrency hack in history, surpassing the $1.5 billion stolen from Bybit in February 2025.
In a statement to BleepingComputer, a Binance spokesperson said: “Our teams are aware of reports of a potential security issue and are actively investigating. Rest assured that user funds are completely safe.” The exchange urged customers to be cautious of scams and to avoid clicking unofficial links or responding to requests for account information.
Changpeng Zhao, the founder of Binance, addressed the situation on social media. He noted that while he no longer manages the exchange, the incident appeared to be a hack and he expects that user funds will be fully covered. That post is Zhao’s personal characterization, not the company’s statement.
The incident centers on what are known as “hot wallets” – digital storage systems connected to the internet that allow exchanges to process transactions quickly. On-chain analysis, which refers to the public record of transactions on a blockchain, shows that billions of dollars were moved from Binance hot wallets to a newly created address. BleepingComputer reported that an analyst put the transfers from a wallet labeled “Binance 14” at approximately $2.53 billion across 64 different tokens, with subsequent reports bringing the total reported transfers to roughly $3.48 billion. Other reporting puts the single-transaction drain near $2.8 billion, citing Etherscan data, and totals vary across outlets. Separately, Arkham Intelligence is tracking 55 addresses associated with the incident whose combined holdings are valued at roughly $5.78 billion – the value of assets sitting in tracked wallets, not a confirmed amount stolen. The transfer figures are as reported by the outlets above, not audited totals.
In response to the suspicious activity, major stablecoin issuers – companies that manage digital currencies pegged to the value of the U.S. dollar – took action to freeze funds. Tether CEO Paolo Ardoino confirmed that the company froze more than $1.567 billion in USDT. Circle CEO Jeremy Allaire confirmed that his company froze more than $800 million in USDC. Together, those actions have locked more than $2.3 billion in assets, preventing them from being moved further.
The cause of the incident remains under investigation. No evidence has emerged in the reporting to date tying the exploit to an artificial intelligence agent, and that absence is not proof that none was involved.
Many details remain unknown. Binance has not confirmed whether the transfers were unauthorized, how the suspected breach occurred, the final total of any assets that may have been stolen, or whether any other platform was affected. The exchange continues to review relevant information and has promised updates through its official channels as soon as the facts are verified.