Key Notes
- Binance says withdrawals will resume once its security issue is resolved and user funds remain safe.
- Crypto Briefing reports at least $5.57 billion in outflows, which is not a verified final loss total.
- Tether and Circle CEOs report more than $2.3 billion in stablecoins frozen.
Binance is keeping withdrawals on hold while it conducts security checks, as Crypto Briefing reports at least $5.57 billion in outflows from wallets linked to the exchange. Binance says user funds remain safe. The reported transfers and the final amount stolen remain separate questions.
In a new update at 22:33 UTC on October 29, the exchange said withdrawals would resume once the security issue was fully resolved. It gave no reopening time or final loss figure.
Reported Outflows Span Ethereum, Bitcoin and Tron
Crypto Briefing reported approximately $3.51 billion in Ethereum-network outflows, $1.44 billion in Bitcoin and $630 million on Tron. Those network figures describe the location of transfers, rather than an asset-by-asset list: the Ethereum component includes tokens as well as ETH.
The publication’s aggregate is a reported estimate, not a Binance-confirmed theft total or an independent reconciliation by CoinScreamer. Its rounded components also should not be read as an exact audited sum. The single Ethereum transaction linked in the report does not, by itself, substantiate the Bitcoin and Tron amounts.
Our earlier coverage tracks the initial wallet alert, market decline and a separate preliminary token breakdown. Different estimates should not be combined into a larger total without checking their addresses, assets and valuation times.
Researchers Examine an Ethereum Wallet Delegation
The Ethereum transaction recorded at 20:24:23 UTC shows approximately 167,464 ETH leaving the address labelled Binance 14, alongside 63 ERC-20 token transfers. These included about 1.615 billion USDT.
Researcher Odysseus flagged an EIP-7702 delegation installed about three minutes and 24 seconds before that movement. In the accompanying thread, he said the delegated code specified an operator funded through Tornado Cash and that a separate transaction later moved another 780 million USDC using the account’s existing owner permissions.
Those are the researcher’s findings, rather than a completed Binance forensic report. He said the origin of the relevant signatures was unknown: either a stolen key or a malicious authorization signed by its owner could enable such a path. The separate USDC movement should not automatically be added to other estimates that may already include it.
The EIP-7702 specification lets an ordinary Ethereum account delegate execution to smart-contract code. Its security guidance warns that poorly implemented delegated code can give a malicious actor extensive control over the account. The feature’s involvement alone does not establish a flaw in Ethereum or explain how authorization was obtained in this case.
Issuer Freezes Exceed $2.3 Billion
Tether CEO Paolo Ardoino said more than 1.567 billion USDT had been frozen in connection with a potential Binance hack. Our Tether brief covers that direct statement, which supersedes the smaller estimate cited in the early reports.
Circle CEO Jeremy Allaire reported more than 800 million USDC frozen in coordination with law enforcement. Together, the issuers’ stated thresholds exceed $2.367 billion at nominal dollar value. They are not additional amounts to add to the outflow estimate, and a freeze does not establish that assets have been returned to customers.
Binance Says User Funds Remain Safe
Binance co-founder Changpeng Zhao said the exchange appeared hacked and that user funds were safe. He stressed that he no longer manages Binance and, as a shareholder, expected customers to be fully covered. That expectation is distinct from a completed reimbursement process.
The exchange’s newer withdrawal statement repeats its assurance about user funds while security work continues. Neither that post nor the issuer announcements supplies a complete loss accounting or a final explanation of the compromise. The reported scale would exceed the approximately $1.5 billion Bybit theft identified by Chainalysis as a historical record, but a new record cannot be treated as established before the Binance loss figure is verified.
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