Binance is investigating a multibillion-dollar security breach involving its Ethereum wallets, with Tether and Circle freezing more than $2.36 billion in stablecoins.

Binance is investigating a potential multibillion-dollar security breach involving one of its Ethereum wallets, after suspicious transfers prompted stablecoin issuers Tether and Circle to reportedly freeze nearly $1.8 billion in assets.

A Binance spokesperson told Cointelegraph on Thursday that the exchange was investigating reports of a potential security issue but had not confirmed any impact on user funds. The spokesperson said its security teams were reviewing the activity and would provide updates once more information was verified.

The concerns were first raised by blockchain researcher Spreek, who posted on X that assets from a Binance-linked Ethereum wallet had been transferred to a newly created address through a contract call allegedly funded by Tornado Cash. Spreek later reported that wallets connected to the transfers had begun selling Tether (USDT) through decentralized exchanges.

Blockchain analytics platform Arkham Intelligence later identified a collection of wallets labeled “binance-hacker-1029” holding approximately $5.84 billion in digital assets Thursday afternoon. The figure represents the wallets’ reported holdings rather than a confirmed estimate of stolen funds.

Binance co-founder Changpeng Zhao said the activity appeared to be a hack, adding that Tether and Circle had frozen approximately $971 million and $823 million, respectively. Zhao said he expected all user funds to be fully covered.

3 billion in suspicious transfers involving Binance-linked wallets across Ethereum, Arbitrum and Avalanche.

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