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Crypto DeFi

Binance Halts Withdrawals After Suspected Hot Wallet Attack; Ripple, WLFI Freeze Assets

Binance co-founder Yi He said on X that the exchange has paused withdrawals until the environment is confirmed safe, after its hot wallet was suspected of being attacked. She thanked Ripple for swiftly freezing about $200 million in related assets and World Liberty Financial for freezing $27 million in USD1 and 48 million WLFI tokens (about $2 million). On-chain data indicates outflows tied to the incident may have reached $5.6 billion.

Original source

AI take

The headline number here is the gap between what was frozen and what on-chain data suggests may have left: roughly $230 million in assets secured by two counterparties against a reported $5.6 billion in possible outflows. That spread is the real story, because it speaks to how much of an exchange-triggered incident can be contained by third parties versus how much depends on the exchange's own controls. The swift freezes by Ripple and World Liberty Financial also show that issuer-level control over tokenized assets is a meaningful lever in incident response — a structural feature worth watching as more RWAs move on-chain. Whether the paused withdrawals resume with a full accounting of losses is the open question.

Generated by AI for reference only.

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