Tether freezes $971 million in USDT linked to suspected Binance hack
The stablecoin issuer blocked the funds after on-chain data flagged suspicious activity on the exchange. Binance has not yet confirmed a security breach.
Key takeaways
- 1Tether froze $971 million in USDT on 29 October
- 2Binance has not yet confirmed a security breach
- 3Tether market capitalisation is $180.9 billion
Tether froze $971 million in USDT tokens linked to a suspected security breach at Binance on 29 October. The stablecoin issuer moved to block the funds after on-chain monitors identified large, unusual transfers from the exchange. Binance has not yet confirmed that its systems were compromised.
Watcher Guru reported the freeze late on 29 October following reports of a potential exploit. The $971 million represents one of the largest single freezes of digital assets by a stablecoin provider. No official statement has been released by Binance regarding the nature of the activity or the status of user funds.
Tether is the third-largest cryptocurrency by market value and maintains a peg to the US dollar. According to YourKhabri data, the token has a market capitalisation of $180.9 billion and was trading at $0.999 at the time of the freeze. Earlier on 29 October, YourKhabri reported that on-chain data showed suspicious activity on Binance.
Market participants are now waiting for a formal response from Binance to clarify if the exchange lost assets. The freeze prevents the suspected attackers from moving the USDT into other assets or withdrawing it through other platforms. Security firms continue to monitor the addresses involved for further movement of other tokens.
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Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.