Bitcoin dropped below $79,000 on Thursday following reports of a suspected $5.8 billion outflow from Binance-linked wallets, prompting Tether and Circle to freeze approximately $1.8 billion to $2.4 billion in stablecoins as a precautionary measure.
The price decline marked a 2.89% fall over 24 hours, with Bitcoin trading as low as $78,177.37 and as high as $81,890 during the period. Trading volume reached $26.14 billion, while Bitcoin’s market cap stood at $1.58 trillion at the time of reporting.
Binance Response and Investigation
Binance has not officially confirmed a breach. Yi He, Binance co-founder, stated in a public message: “We are aware of reports of a potential security issue and we are actively investigating. Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information. Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information.”
Changpeng Zhao, former Binance CEO and current shareholder, said: “I don’t manage Binance anymore, but as a shareholder, I expect all user funds will be fully covered.” Binance.US confirmed the incident does not affect its platform.
Stablecoin Freezes and Security Response
Tether froze $1.567 billion in USDT, while Circle froze $823 million in USDC. Paolo Ardoino, Tether CEO, stated: “Protecting the industry and our partners is our main priority.”
Aave, a lending protocol, reportedly froze lending markets to block the suspected attacker from borrowing against stolen assets. Blockchain researcher Spreek flagged activity reportedly involving a transfer through a contract call allegedly funded by Tornado Cash, the mixing service.
Outflow Estimates and Conflicting Figures
Outflow figures vary across sources. Social media reports cited up to $5.8 billion in suspected outflows from Binance-linked wallets. Onchain data showed approximately $3.55 billion in incoming transfers to an unlabeled wallet. Security firm Blockaid estimated $3.3 billion in suspicious outflows from Binance hot wallets across Ethereum, Arbitrum, and Avalanche.
One estimate placed realized loss near 0.7% of Binance customer assets, though reports continue to revise totals. The exact total loss amount remains unconfirmed and fluid.
Historical Context
If confirmed, the incident would be the largest crypto theft on record, surpassing the February 2025 Bybit hack of roughly $1.5 billion. Bybit confirmed its systems are operating normally and user assets remain secure.
Law enforcement has not released a formal account of the incident. The identity of the suspected attacker has not been disclosed.
