Solana privacy protocol Privacy Cash announces suspension of deposits due to inflow of stolen funds from Binance

BlockBeats news, November 5 — Privacy protocol Privacy Cash officially announced on the X platform that it has temporarily suspended all deposit services, while withdrawal functions remain fully operational.

The team stated: "We founded Privacy Cash to provide privacy tools for ordinary people, not to facilitate crime. In light of the recent Binance hack incident, we must ensure that bad actors cannot exploit our product." During the suspension, the team will continue to strengthen its wallet screening system, with a specific resumption date to be announced later.

According to on-chain analytics firm Elliptic, approximately $1.2 million worth of ETH and SOL from the stolen Binance funds has flowed into Privacy Cash's privacy pool. On November 3, about 41 ETH + 9,600 SOL (totaling approximately $1 million) entered, followed by another ~2,300 SOL. These funds represent only a tiny fraction of the total stolen from Binance (approximately $6 billion). Privacy Cash is a zero-knowledge proof (ZK)-based privacy protocol supporting networks including Solana, Ethereum, Base, BNB, Hyperliquid, and Robinhood Chain. Users deposit assets into a shared pool and can withdraw to any address via ZK proofs, thereby severing on-chain links. The protocol is backed by Alliance DAO, has processed over $600 million in transaction volume, and has undergone multiple security audits. This suspension is a proactive compliance and risk-control measure taken by the privacy protocol following the recent large-scale Binance hack incident (October 29). Assets already deposited by users can still be withdrawn normally.