Binance is investigating an unexplained outflow of roughly $2 billion from its hot wallets, an event that rippled through crypto markets late Thursday and helped drive the largest hourly liquidation in recent weeks. The exchange said it was looking into a potential security issue and emphasized that it had not confirmed any loss of funds.
Founder Changpeng Zhao reportedly said the situation did "look like a hack," a comment that quickly circulated among traders. Blockchain trackers noted the first transfer out of the Binance 14 wallet landed at 20:24 UTC, with the sharpest price movements following within minutes. The uncertainty, rather than any confirmed theft, appears to have triggered the selloff.
Tether froze more than 1.567 billion USDT linked to the $2 billion outflow, a step that took most of the moved stablecoins out of play and may limit how much of the funds can be offloaded. Analysts note that funds stolen from exchanges are typically sold, creating a different and often more persistent overhang than a decentralized finance exploit.
The episode highlights the market's sensitivity to exchange-level risk. Within a single hour, $627.7 million in positions were liquidated, according to Coinglass, with Binance alone accounting for $344.8 million. Traders now watch whether further details from Binance, or any confirmed losses, extend the drawdown or let prices stabilize.