Tether freezes $971 million in USDT

Aave has suspended its lending market on Avalanche to prevent Binance hackers from borrowing funds. (Watcher.Guru)

200 million USDT have flowed out of Binance's hot wallets, and Tether has frozen the asset. Tether had previously frozen over $1.567 billion in USDT. The total outflow of assets associated with Binance token wallets is approximately $5.643 billion, including approximately $3.528 billion from the Ethereum network, approximately $1.449 billion from the Bitcoin network, approximately $628 million from the Tron network, and approximately $38 million from Arbitrum, Optimism, and Base combined. He Yi stated that Binance is aware of reports of potential security issues and is actively investigating. The security team is urgently reviewing all relevant information and will release the latest updates through official Binance channels after verification, reminding users to be vigilant against scams and emphasizing user fund security (SAFU).

In late New York trading on Thursday, spot gold fell 1.13% to $4,201.15 per ounce, while spot silver fell 3.4% to $52.144 per ounce.

Attackers allegedly exploited the Ethereum EIP-7702 mechanism to obtain signature authorization, installing malicious code without direct access to the private key of their Binance wallet. They then invoked the `sweep` function to transfer ETH and dozens of other tokens to a controlled wallet. The same delegation authority was used to transfer $780 million USDC from another Binance hot wallet, followed by the transfer of nearly 195,500 ETH to a newly created wallet. Binance stated that user funds are safe and is currently investigating (Source: Bitcoin News).

Binance lost $5.5 billion due to a suspected hacking attack, and Tether and Circle froze $1.8 billion of those assets.