Binance is facing reports of a major security incident involving a suspected $5.8 billion cryptocurrency exploit. Blockchain researchers believe the attacker exploited EIP-7702, a feature that allows ordinary crypto wallets to execute transactions using smart contract instructions.
According to reports, the attacker allegedly used malicious code to redirect funds to an address under their control. Tether and Circle reportedly froze more than $2.38 billion in USDT and USDC linked to the incident, while Binance co-founder Yi He said Ripple had frozen approximately $200 million in RLUSD.
Despite the reported freezes, investigators have yet to establish how the attacker obtained the necessary authorisation or confirm how much money was stolen. Binance has maintained that customers’ funds are safe, while the incident has raised fresh concerns about cryptocurrency security.
