Key Takeaways:
- Privacy Cash has temporarily suspended all deposits.
- Investigators mapped the fate of around $1.2 million in stolen ETH and SOL for their privacy pools.
- Redrawals are kept active until the protocol’s wallet-screener enhancements are released.
Wallets connected to the Binance hack have been sending cryptos through Privy’s privacy layers, prompting the service to temporarily halt new deposits.
It also confirmed the suspension will be used to prevent illegal users from transacting on the platform while improving wallet screening and noted that withdrawals will be proceeding during it.
Read More: Binance Hacker Sends $798K in SOL to Privacy Cash, Laundering Spreads Across 11 Chains
Privacy Cash Suspends New Deposits
Privacy Cash said the decision was directly linked to the recent Binance breach. The project declaration emphasized that its purpose is to offer financial privacy for regular users, and not infrastructure for laundering stolen assets. It didn’t give any timeline on when the deposits would reopen.
We’re pausing Privacy Cash deposits temporarily.
When we started Privacy Cash, our goal was to make privacy tools for everyday people, not to enable crime. In light of the recent Binance hack, we want to make sure bad actors can’t use our product.
During the pause, we’ll continue strengthening our wallet screening system.
Withdrawals will remain available.
Stay tuned for updates on when the service will resume.
Thanks for understanding. Privacy is for everyone, but not for criminals.
— Privacy Cash (@theprivacycash) November 4, 2026
During the lull, the team pledged to enhance the screening processes that could detect suspicious wallets before the money lands in its pools. None of the withdrawals is impacted, so existing users of Privacy Cash can still withdraw their funds, and new deposits will not be accepted.
Read More: Binance $6.3B Hack Triggers FBI Probe While $3B in Stolen Crypto Gets Frozen
Binance-Linked Crypto Reaches Privacy Pools
The pause comes after a significant ramp-up of laundering just tied to the Binance-heist that cost them $6.43 billion. The attackers have been shifting money between cryptowallets, decentralized exchanges, cross-chain bridges, lending platforms and mixers on 11 different blockchains, Elliptic said. In the first few days of the operation, about 12,000 wallets and over 40,000 transactions have been utilized.
Elliptic tracked ETH and SOL with this theft and detected them moving into Privacy Cash. Then more deposits onto Solana were spotted, bringing the combined total value to roughly $1.2 million and further complicating an already well-established and splintered laundering network.
Mixers Become Part of a Larger Laundering Strategy
One such path being taken is Privacy Cash. Elliptic has been able to track stolen money since the cross-chain bridges, DEXs, pooling strategies, and Bitcoin mixing dynamics. However, some batches traversed many blockchains in hours, making tracing of transactions more complex, the firm said.
The laundry also is heavily automated. The community is active, even some patterns of repetitive transactions were seen occurring almost continuously and Elliptic timed transactions as a set. The peak of laundering transactions on Tron was around 1,300 transactions in an hour.
Billions in Binance Funds Remain Traceable
Despite the cross-chain movement and mixing, most of the crypto has yet to be cashed out.
About $2.85 billion has been frozen or seized, and billions more remain in addresses associated with the attack, Elliptic estimates. The crypto firm also released its free blocklist allowing exchanges and crypto companies to filter funds for exposure.
But that leaves centralized exchanges, OTC brokers and other points of cashing out as major choke points for investigators.
It’s a pressure that is not limited to exchanges, and is now also hitting the privacy protocols, as Privacy Cash suspended deposits.
