Exchange pauses withdrawals as stablecoin issuers freeze billions in suspected stolen funds. Binance confirmed it is investigating a suspected security breach involving large, unexplained out
Exchange pauses withdrawals as stablecoin issuers freeze billions in suspected stolen funds.
Binance confirmed it is investigating a suspected security breach involving large, unexplained outflows from its wallets. Estimates of the total amount vary. Some reports place the figure near $5.57 billion, while others cite numbers as high as $5.9 billion.
The exchange paused withdrawals shortly after detecting the suspicious activity. Tokens including Bitcoin, Ethereum and XRP were reportedly among the assets moved out of Binance-linked wallets. The scale of the reported outflow would rank among the largest security incidents in the exchange's history.
Stablecoin issuers moved quickly in response. Tether and Circle reportedly froze a combined $1.8 billion in assets tied to the suspected exploit. Ripple separately froze $200 million in its RLUSD stablecoin. Combined, issuer freezes reached roughly $2.3 billion, according to reports.
One suspect allegedly converted $570 million of the stolen funds into Ethereum, according to CoinTurk News. That detail suggests attackers may have tried to move assets into a more liquid or less traceable form quickly after the breach. Binance has not publicly confirmed the identity of those responsible.
Bitcoin's price fell below $79,000 following the news, based on reporting from TronWeekly. Market reaction of that kind often follows large exchange security events, as traders weigh potential forced selling, liquidity risk and reputational damage to the platform involved.
Binance has not yet issued a full public statement detailing the cause of the outflows, the exact amount lost, or a timeline for restoring withdrawals. The exchange's decision to pause withdrawals is a standard precaution during active security investigations, intended to prevent further loss while forensic teams assess wallet activity.
The involvement of major stablecoin issuers freezing funds within hours shows how blockchain analytics and issuer-level controls can respond rapidly to suspected theft. Tether, Circle and Ripple each maintain the technical ability to freeze tokens tied to flagged addresses. That capability has become a standard industry response tool following large hacks, though it does not guarantee recovery of all stolen funds.
This incident adds to a long list of exchange security breaches that have shaped crypto market structure discussions over the past decade. Large hacks typically prompt renewed scrutiny of custody practices, hot-wallet management and the balance between exchange liquidity and security. Regulators and industry participants often use such events to push for stronger safeguards across centralized platforms.
The suspected breach triggered an immediate price reaction, with Bitcoin dropping below $79,000 as news of the outflows spread. Large exchange hacks tend to raise short-term volatility across major tokens, since traders often reduce exposure to platforms perceived as compromised until details are confirmed.
The freezing of roughly $2.3 billion by Tether, Circle and Ripple may limit the usable proceeds available to whoever is responsible for the outflows. However, the scale of the reported total, still estimated in the billions, could continue to weigh on sentiment toward Binance and centralized exchange risk more broadly until the exchange issues further clarification.
Binance's investigation remains ongoing, and the exact scope of the suspected breach has not been finalized. Further updates from the exchange, along with any additional freezes by stablecoin issuers, are likely to shape how the market assesses the incident in the coming days.
Reported estimates vary between about $5.57 billion and $5.9 billion, based on different sources tracking the suspicious wallet outflows.
Reports indicate Bitcoin, Ethereum and XRP were among the tokens involved in the suspicious outflows from Binance-linked wallets.
Tether and Circle reportedly froze a combined $1.8 billion, and Ripple froze $200 million in RLUSD, totaling roughly $2.3 billion in frozen funds tied to the incident.
Binance paused withdrawals after detecting the suspicious activity. The exchange has not publicly stated when withdrawals will resume.
Update 30 Oct 2026, 00:42 UTC · added by Bitcoin.com News
Bitcoin.com News reports Binance has publicly stated that customer funds remain safe, a reassurance not noted in the original coverage, while characterizing the frozen total from Tether, Circle and other issuers as “more than $2 billion” rather than the earlier figure. The outlet also frames the suspected breach as spanning “several blockchains” and describes the investigation as still ongoing, with full confirmation of the breach’s scope yet to be established.
Originally reported by AltcoinGordon, written by Noah Sullivan. Republished with permission.
View the original on AltcoinGordon →
The post Binance Investigates Suspected $5.9 Billion Hack Affecting BTC, ETH and XRP appeared first on TheCoinrise.com.
