Privacy Cash has temporarily suspended new deposits after investigators traced about $1.2 million in cryptocurrency linked to the Binance hack into its privacy pools. Withdrawals remain available while the protocol strengthens its wallet-screening systems.

The service said wallets connected to the Binance breach had been routing stolen assets through its privacy layers. Privacy Cash said the pause is intended to prevent illicit users from transacting on the platform while the screening enhancements are developed. It did not provide a date for when deposits will reopen.

Privacy Cash Halts New Deposits

Privacy Cash said the decision was directly related to the recent Binance breach. The project said its purpose is to provide financial privacy for ordinary users, not to serve as infrastructure for laundering stolen assets.

In a statement posted on X, Privacy Cash said:

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

https://x.com/theprivacycash/status/2118013653966364974?ref_src=twsrc%5Etfw

The team said it would improve the screening processes used to identify suspicious wallets before funds reach its pools. Existing users can continue withdrawing their funds, but new deposits are not being accepted. The suspension affects deposits only; Privacy Cash said withdrawals would continue during the pause. Because screening applies to inflows before they reach the pools, the changes take effect on the deposit side, which is why withdrawals can stay open while the work continues.

Binance-Linked Funds Reach Privacy Pools

The suspension followed an increase in activity associated with the Binance hack, which the source describes as involving $6.43 billion. According to blockchain analytics firm Elliptic, the attackers moved funds among cryptocurrency wallets, decentralized exchanges, cross-chain bridges, lending platforms and mixers across 11 blockchains.

During the first few days of the operation, approximately 12,000 wallets and more than 40,000 transactions were involved, Elliptic said. The firm tracked stolen ETH and SOL and identified transfers into Privacy Cash. Additional deposits on Solana brought the combined value sent to the privacy service to roughly $1.2 million, adding to an already fragmented laundering network. That $1.2 million is a small fraction of the $6.43 billion total described by the source.

Mixers Form Part of a Broader Laundering Operation

Privacy Cash was one route used in the movement of the stolen funds. Elliptic said it tracked the assets through cross-chain bridges, decentralized exchanges, pooling strategies and Bitcoin-mixing activity. Some batches moved across multiple blockchains within hours, making the transactions more difficult to trace.

Elliptic also described the activity as heavily automated. The firm observed recurring transaction patterns operating almost continuously and said it was able to time transactions as a group. On Tron, the peak rate of laundering-related activity reached about 1,300 transactions in one hour.

Billions in Binance-Linked Funds Remain Traceable

Despite the use of cross-chain transfers and mixing services, most of the cryptocurrency has not yet been converted into cash. Elliptic estimates that approximately $2.85 billion has been frozen or seized, while billions more remain in addresses associated with the attack.

Elliptic also released a free blocklist that allows exchanges and other cryptocurrency companies to screen for exposure to the identified funds. Centralized exchanges, over-the-counter brokers and other cash-out points therefore remain important control points for investigators. For services screening their inflows, such a reference list offers a direct way to flag exposure to the attack’s funds.

The pressure from the investigation is extending beyond exchanges to privacy protocols. Privacy Cash’s decision to suspend deposits reflects the increased scrutiny facing services through which funds linked to the Binance hack have moved. Privacy Cash has said updates will follow on when deposits resume, so the reopening date and any specifics it shares about the upgraded screening will show how its entry controls have changed. Meanwhile, with roughly $2.85 billion already frozen or seized and billions still sitting in addresses associated with the attack, further freezes and seizures reported by investigators remain a key measure of how much of the stolen funds can be contained before conversion into cash.

Source: CryptoNinjas