Binance Pauses Withdrawals as Billions Drain From Its Hot Wallets

Binance, the world's largest cryptocurrency exchange, said on Thursday, October 29, that it is investigating a potential security issue after billions of dollars in crypto flowed out of its hot wallets, the internet-connected wallets where an exchange stores crypto. Binance spokesperson Ross O'Leary told TechCrunch the exchange had temporarily suspended withdrawals on multiple networks as a precaution. In its statement, Binance said user funds are completely safe and that it will post updates only through official Binance channels.

The size of the loss is not settled, and Binance has not confirmed a figure. TechCrunch reported that crypto watchers put the drain at no less than $2 billion and noted the theft could still be ongoing. The security firm Blockaid said it is investigating about $3.3 billion in suspicious outflows across the Ethereum, Arbitrum and Avalanche networks, according to The Block. CoinDesk, citing Arkham blockchain data, put the total above $5.7 billion, and an on-chain tally reported by Decrypt counted $5.57 billion across Ethereum, Bitcoin and Tron. Those larger numbers are estimates drawn from public blockchain records, not confirmed losses. TechCrunch reported that it is unclear who is behind the attack.

Some of the money has already been stopped. Decrypt reported that Tether froze 975.1 million USDT and Circle froze 823 million USDC sitting in the main receiving wallet, about $1.8 billion in stablecoins. Gizmodo reported that Binance put the verified frozen total at $2.54 billion as of about 7:20 p.m. Eastern, while cautioning that the number was still moving. The lending platform Aave froze markets to keep the attacker from borrowing against the stolen coins, according to on-chain data cited by The Block. Binance founder Changpeng Zhao, who no longer runs the exchange, posted that it does look like a hack and that user funds are safe, and BleepingComputer reported he expects user funds to be fully covered.

Scale is what sets this event apart. Gizmodo noted that the largest crypto theft on record was the roughly $1.5 billion taken from the Bybit exchange in 2025 by the North Korea-linked Lazarus group, so even the low estimates here would top it. CoinDesk reported that Binance held roughly $144 billion in assets before the attack, citing DefiLlama data. It helps to be precise about what was emptied: these are the exchange's own hot wallets, not the phones or home hardware wallets of its customers. The practical effect for account holders today is the withdrawal pause, which means coins held on Binance cannot be moved off the exchange on the affected networks until it lifts.

Start with the scams, because they arrive right behind headlines like this one. Binance itself warned users to distrust unofficial links, messages and requests for account information. Expect texts and emails offering refunds, compensation or an urgent account check. Open the app you installed yourself or type the address by hand, and use our guide to spotting phishing messages before you click so the whole family knows the signs. Next, harden the accounts a thief would want most: your exchange, your email and your bank. Turn on multi-factor authentication with an authenticator app or a hardware key, which blocks most account takeovers even when a password leaks. Then take a screenshot of your balances and recent transactions today, so you have a dated record if you ever need to file a claim. If you hold crypto on any exchange, treat it as money that can be frozen for days, and keep the money for rent, groceries and bills in an insured bank account with some cash on hand for a crisis. A family whose emergency fund sits in more than one place can ride out a pause like this one without missing a payment.

As of Thursday evening, withdrawals remained suspended on multiple networks, the final loss was unconfirmed, and Binance said it would share verified updates through its official channels. Be Prepared Not Scared!