Binance is investigating a security incident after related wallets transferred an initial estimated $5.78 billion in assets, in what could be the largest hack in cryptocurrency history.

"We are aware of reports of a potential security issue and are actively investigating," Binance digital currency exchange announced on social network X on the morning of October 30. The exchange said it would temporarily suspend deposits and withdrawals to check security, freeze related assets and coordinate with law enforcement agencies.

The incident broke out in the early morning of October 30 (Hanoi time), when a Binance hot wallet was discovered to have transferred about 2.53 billion USD in assets of 64 digital currencies to a new Ethereum address. 24 seconds later, another wallet on the exchange continued to transfer 174.4 million USD. A subsequent transaction from a third hot wallet transferred another 780 million USDC to the same address, bringing the total value of reported transactions to approximately $3.48 billion.

Blockchain analytics platform Arkham Intelligence tracked 55 wallet addresses labeled in connection with the incident, saying the total assets on these wallets were worth $5.78 billion. However, this is the asset value tracked on the wallets, not the damage figure confirmed by Binance.

In the announcement at 8:00 a.m. (Hanoi time), Binance said that the total value of verified frozen assets reached about 3 billion USD. The exchange is continuing to coordinate with law enforcement agencies, digital currency issuers, blockchain analysis companies and industry partners to trace and block additional assets related to the case.

"We continue to work closely with law enforcement, issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets," Binance's account wrote, confirming user funds on the exchange remain safe.

This may be the largest hack in the history of digital currency exchanges, many times the damage that Bybit exchange encountered in February 2025 when hackers took away about 1.5 billion USD in cryptocurrency.

Changpeng Zhao (CZ), founder of Binance, said the incident showed signs of being an attack on the exchange. Although he no longer directly runs the company, he said that as a shareholder, he expects all user assets to be guaranteed.

Stablecoin issuers also intervene to prevent the continued flow of stolen funds. According to information from the leaders of the two companies, Tether has frozen USDT worth more than 1.56 billion USD, while Circle has frozen more than 800 million USD USDC related to the incident.

After being transferred from Binance-related wallets, a portion of the assets are said to have passed through decentralized finance platforms such as Uniswap and Aave. These are services that allow users to trade or borrow assets directly through digital wallets, without the need for a centralized exchange as an intermediary.

To respond, Binance established the Secure Asset Fund for Users (SAFU) in 2018, to protect users in emergency situations. This fund currently holds about one billion USD worth of Bitcoin. However, Binance has not confirmed whether it will use the SAFU fund to compensate for losses in this incident.

Liu Quy