Binance Faces Scrutiny Over $5.9 Billion Suspicious Outflows

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Blockchain analytics firm Glassnode has reported suspicious crypto outflows linked to Binance, amounting to approximately $5.9 billion. Initial calculations pegged the withdrawals at $5.3 billion, but subsequent movements raised the total figure. The final extent of any losses remains uncertain pending the ongoing investigation.

Massive Transfers Raise Alarm

Initial examinations have identified significant outflows including $1.66 billion in USDT, about $1.45 billion worth of 17,985 BTC, and $767 million in USDC. These suspect activities have further extended to other assets such as Ethereum, XRP, Solana, and Tron. Glassnode observed that these transfers occurred sequentially across various blockchains, starting with XRP before spreading to SOL, BTC, and others.

Glassnode noted there was no movement in Binance’s BNB balance. The firm, known for tracking on-chain financial flows, remains a leading entity in blockchain data analysis.

Changpeng Zhao stated on X that the incident appears to be an attack on Binance, assuring, however, that user assets remain secure.

Quick Reaction from Stablecoin Issuers

Binance co-founder and former CEO Changpeng Zhao acknowledged the potential security breach, admitting he no longer manages the company but expects user assets to be fully covered. In another statement, Zhao conceded that the actual loss might exceed frozen assets despite the precautions taken.

Tether CEO Paolo Ardoino announced the freezing of 1.567 billion USDT linked to the potential attack. Meanwhile, Circle CEO Jeremy Allaire reported that over $800 million in USDC has been blocked in coordination with law enforcement.

Paolo Ardoino emphasized that safeguarding the industry and its partners is a core priority for Tether.

Binance later updated that the total frozen assets reached $2.54 billion, cautioning that this figure might rise as the investigation proceeds.

Severe Market Pullback Observed

If the highest loss estimates are validated, this incident could become the largest attack in the history of the cryptocurrency market. The previous record was a $1.5 billion Ethereum loss from an attack on Bybit in February 2025.

Following the suspicious outflows, the cryptocurrency market experienced a notable downturn. Bitcoin briefly fell below $79,000, and Ethereum dipped under $2,300. XRP fell by roughly 7%, and Binance’s native token BNB initially dropped around 7% amid the fallout.