# Binance Hack: $5.7B in Transfers; CZ Says Losses Will Be Covered
On Oct. 29, on-chain data reportedly showed $5.6–5.7B moved from Binance hot wallets to new attacker addresses—nearly four times the $1.5B Bybit hack in Feb. 2025. Founder Changpeng Zhao (CZ) said net losses could exceed $1B but would be covered.
## How It Happened
Transfers began at 23:24 Istanbul time. One transaction moved 167,464 ETH and 63 tokens, including ~$1.6B USDT; 28,005 ETH followed 24 seconds later, then ~$800M USDC. The main Ethereum outflow took ~40 minutes.
Investigators suspect EIP-7702, which lets wallets delegate authority to smart-contract code. A malicious “sweep()” call reportedly emptied a wallet. How the signature was obtained remains unknown: a stolen key, compromised signing system or insider involvement are possibilities.
## Funds and Response
The initiating address was funded through three ~0.1 ETH Tornado Cash transfers. Cross-chain estimates total $5.6–5.7B: ~$1.6B USDT, $1.45B BTC, $767–823M USDC, 195K ETH/WBETH worth $450M+, $301M XRP, $234M TRX, $93M SOL, $88.5M RLUSD, $50M XAUT and other tokens. Estimates vary by network and pricing.
Tether reportedly froze over $1.567B USDT and Circle ~$823M USDC; BTC and ETH are harder to freeze. CZ said users’ funds were safe and Binance would cover net losses, potentially slightly above $1B. He cited ~$144B in Binance assets. The exchange said it was investigating; a technical explanation and whether reimbursement comes from SAFU or the company balance sheet remain unclear.
## Market Impact
Within an hour, ~$628M in positions were liquidated, ~$607M of them longs. BNB fell 8–9%; $BTC slid from ~$80,800 to below $79,000, while $ETH , XRP and SOL fell 3–5%.
Key questions: will Binance confirm the breach and explain the signing failure, will withdrawals remain open, and will frozen stablecoins be returned? Figures and the cause remain unconfirmed. Not investment advice.
On Oct. 29, on-chain data reportedly showed $5.6–5.7B moved from Binance hot wallets to new attacker addresses—nearly four times the $1.5B Bybit hack in Feb. 2025. Founder Changpeng Zhao (CZ) said net losses could exceed $1B but would be covered.
## How It Happened
Transfers began at 23:24 Istanbul time. One transaction moved 167,464 ETH and 63 tokens, including ~$1.6B USDT; 28,005 ETH followed 24 seconds later, then ~$800M USDC. The main Ethereum outflow took ~40 minutes.
Investigators suspect EIP-7702, which lets wallets delegate authority to smart-contract code. A malicious “sweep()” call reportedly emptied a wallet. How the signature was obtained remains unknown: a stolen key, compromised signing system or insider involvement are possibilities.
## Funds and Response
The initiating address was funded through three ~0.1 ETH Tornado Cash transfers. Cross-chain estimates total $5.6–5.7B: ~$1.6B USDT, $1.45B BTC, $767–823M USDC, 195K ETH/WBETH worth $450M+, $301M XRP, $234M TRX, $93M SOL, $88.5M RLUSD, $50M XAUT and other tokens. Estimates vary by network and pricing.
Tether reportedly froze over $1.567B USDT and Circle ~$823M USDC; BTC and ETH are harder to freeze. CZ said users’ funds were safe and Binance would cover net losses, potentially slightly above $1B. He cited ~$144B in Binance assets. The exchange said it was investigating; a technical explanation and whether reimbursement comes from SAFU or the company balance sheet remain unclear.
## Market Impact
Within an hour, ~$628M in positions were liquidated, ~$607M of them longs. BNB fell 8–9%; $BTC slid from ~$80,800 to below $79,000, while $ETH , XRP and SOL fell 3–5%.
Key questions: will Binance confirm the breach and explain the signing failure, will withdrawals remain open, and will frozen stablecoins be returned? Figures and the cause remain unconfirmed. Not investment advice.
