Daily Crypto News | October 29, 2026
A massive security incident is unfolding at Binance, with as much as $2.8 billion in cryptocurrency reportedly transferred from exchange-associated wallets. Binance founder Changpeng Zhao, better known as CZ, says he believes the incident was a hack and expects customers to be protected.
Billions Moved From Binance Hot Wallets
Blockchain investigators have identified a series of suspicious transactions involving Binance-associated Ethereum wallets, raising concerns about one of the largest potential cryptocurrency exchange security breaches in history.
The unusual activity reportedly began around 4:24 p.m. Eastern Time on Thursday, October 29.
Initial findings indicate that approximately $2.5 billion to $2.8 billion in digital assets were transferred, although the total amount actually stolen has not been independently confirmed.
Among the reported transactions were:
Approximately 1.615 billion USDT transferred from a wallet identified as Binance 14.
167,464 ETH, valued at approximately $388 million at the time.
Another 28,005 ETH transferred from a wallet identified as Binance 16.
Additional Ethereum-based assets, including wrapped ETH, USDC, and other tokens.
The transfers reportedly originated from operational hot wallets, which cryptocurrency exchanges use to process transactions and withdrawals.
Investigators flagged the movement of assets into newly created addresses, along with reported connections to Tornado Cash, a cryptocurrency privacy protocol frequently scrutinized in investigations involving stolen digital assets.
However, suspicious blockchain activity alone does not establish that every transferred dollar was stolen.
CZ Responds: “I Don’t Manage Binance Anymore”
Binance founder Changpeng Zhao addressed the developing situation on X, acknowledging what he described as an apparent hack.
CZ reportedly stated:
“I don’t manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered.”
He also reassured the cryptocurrency community with a separate message:
“User funds are safe!”
The comments are significant because CZ no longer manages Binance’s day-to-day operations.
His statement represents an expectation as a shareholder, rather than an official reimbursement commitment from Binance.
The exchange has not yet publicly established the full extent of any losses or announced a specific customer compensation program.
Tether and Circle Reportedly Freeze $2.39 Billion
One of the most important developments involves the rapid response from major stablecoin issuers.
According to emerging reports, Tether and Circle have frozen substantial amounts of cryptocurrency associated with the suspicious transfers.
The reported figures include:
Tether: $1.567 billion in USDT frozen
Circle: $823 million in USDC frozen
Combined total: approximately $2.39 billion
If these figures are confirmed and the frozen assets are included in the reported $2.8 billion in transfers, approximately 85% of the affected value may already be immobilized.
This could substantially reduce the eventual financial impact.
Unlike Bitcoin or Ethereum, centralized stablecoins such as USDT and USDC include mechanisms that allow their issuers to freeze tokens at specific blockchain addresses.
That means stolen stablecoins can potentially be prevented from moving further through the cryptocurrency ecosystem.
However, freezing assets is not the same as recovering them. Any eventual return of funds would require additional action.
How Did the Binance Hack Happen?
Blockchain analysts are investigating whether the incident involved Ethereum’s EIP-7702 functionality.
EIP-7702 allows certain Ethereum accounts to temporarily delegate execution capabilities to smart contracts.
Investigators suspect that a malicious authorization may have allowed an attacker-controlled contract to move funds from a Binance-associated wallet.
If confirmed, this could indicate a compromise involving wallet authorization or transaction signing rather than a conventional breach of an exchange database.
At this stage, investigators have not established how any unauthorized access was obtained.
There is also no confirmed public evidence identifying the attacker or establishing whether a private key was compromised.
Are Binance Customer Funds Safe?
Binance has acknowledged that it is investigating a potential security issue but has not confirmed that customer balances were affected.
CZ’s comments suggest he expects the exchange to protect customers from any resulting losses.
Binance also maintains its Secure Asset Fund for Users, commonly known as SAFU, an emergency reserve designed to provide protection in certain security incidents.
However, Binance has not announced whether SAFU will be used in connection with this event.
The distinction between assets transferred, assets stolen, assets frozen, and actual customer losses remains critical.
A reported $2.8 billion movement does not necessarily mean Binance has suffered a permanent $2.8 billion loss.
What Happens Next?
Several developments will determine the ultimate severity of this incident.
Investigators will need to establish the exact amount transferred without authorization, whether additional wallets were compromised, and how the suspected attacker gained access.
The status of the reported $2.39 billion in frozen stablecoins will also be central to determining how much cryptocurrency can eventually be recovered.
Binance will face questions about its hot-wallet security, authorization procedures, and the adequacy of its emergency reserves.
For customers, the most important questions are whether deposits and withdrawals continue functioning normally and whether the exchange ultimately confirms any impact on customer balances.
Daily Crypto News: The Bottom Line
The cryptocurrency industry is confronting a potentially historic exchange security incident.
Up to $2.8 billion in cryptocurrency reportedly moved from Binance-associated wallets, while Tether and Circle have reportedly frozen approximately $2.39 billion.
CZ has publicly expressed confidence that customers will be protected, but Binance has not yet confirmed the full financial impact or announced a reimbursement plan.
The most important unresolved question is not simply how much cryptocurrency moved.
It’s how much was actually stolen, how much can be recovered, and whether any Binance customer ultimately loses money.
Daily Crypto News will continue monitoring Binance’s official announcements, CZ’s statements, blockchain investigators, and developments involving the frozen assets as this story unfolds.
Sources and developing coverage
Editor’s note: This is a developing story published October 29, 2026. Figures and technical explanations reflect preliminary reporting and may change as investigators and Binance release additional information.