Allora Freezes Stolen ALLO Tokens, Begins Full Binance Recovery

Allora has frozen ALLO tokens linked to Binance’s security breach and begun returning the affected assets to the exchange. The project confirmed on X that its network and token contract remain secure, while holders outside Binance were unaffected. It added that the attacker cannot move, sell or use the frozen tokens.

Allora’s emergency contract safeguard stopped further transfers after identifying the stolen tokens. The project plans to return them to Binance without changing the token’s total supply.

Binance Incident Triggers Token Recovery

Binance co-CEO Richard Teng said the incident exposed security weaknesses beyond an initially suspected employee laptop compromise. The attacker reportedly exploited Ethereum’s EIP-7702 authorization mechanism to gain execution approval over a hot wallet.

Related: Binance Buys Back Stolen Crypto Through OTC Deals: But Can It Regain User Trust?

Binance reserved more than $6.34 billion to cover affected assets and began acquiring missing tokens. Its partners also helped freeze approximately $3 billion in assets.

Crypto Firms Join Recovery Efforts

Tether froze more than $1.567 billion in USDT, while Circle confirmed freezing over $800 million in USDC. Ripple, World Liberty Financial and Arbitrum also reported freezes linked to the incident.

Meanwhile, CoinMarketCap data showed ALLO down 14.1% over seven days to $0.1712. Daily trading volume increased 74.06% to $7.93 million. Allora said it would publish another update after completing the restoration.

Related: Elon Musk Reacts to $6.3B Binance Breach With “Everyday Is Zeroday”