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0.05% of SHIB supply appears to be locked in an uncertain fate, as according to longtime Shiba Inu community member Mazrael, nearly 500 billion SHIB, or about 0.05% of supply worth nearly $2.3 million, was transferred to the address tagged "Binance Hot Wallet Exploiter 2": 0x5227f603C1eE34CE3C06eFe6477003BDfCCB2f8c.

This follows the recent hack at major exchange Binance, deemed the largest in crypto history, with an estimated total impact reported at around $6.3 billion. The hack, according to CryptoQuant, began with one transaction on Oct. 29, 2026, at 20:24 UTC: the wallet "Binance 14" sent out 167,464 ETH, worth $1.6 billion in USDT and 63 other tokens.

Mazrael reports the Binance hacker's SHIB holdings to be 499,926,072,560 SHIB, which is 0.05% of the Shiba Inu supply, sharing a screenshot of Etherscan data to back up this claim.

In a separate post, Mazrael noted the address "Binance Hot Wallet Exploiter 2" (0x5227f603C1eE34CE3C06eFe6477003BDfCCB2f8c) to be a brand-new address with no prior history. Etherscan tags it as "Exploit" and "Heist," and it currently holds 499.9 billion SHIB worth $2.25 million, along with large amounts of other tokens (USDT, USDC, ETH) that were swept from Binance-labeled hot wallets.

Binance's initial investigation suggests the security incident involved a compromised DevOps engineer's laptop, which allowed an attacker to gain access to a service container and submit unauthorized withdrawal transactions. It, however, found no evidence of any wallet private key leak.

Warning Issued

In the wake of the security incident, which saw Binance's hot wallets swept and 499.9 billion SHIB stolen, Mazrael highlighted the importance of self-custody, saying, "Not your keys, not your SHIB."

While centralized exchanges offer convenience, users of exchange platforms may have to depend on the security and operational safeguards of those services.

Binance has confirmed an estimated total impact of about $6.3 billion for the hack, with around $3 billion in assets frozen on-chain so far. The crypto exchange says it will cover all losses from the SAFU fund and the company's funds, reiterating that user funds remain safe.

It is important to keep in mind that frozen funds, recovered funds, and funds ultimately lost are different things, with the final, irrecoverable loss still unknown.