Binance investigates potential hack as $2.5bn in crypto funds frozen
Stablecoin issuers Tether and Circle froze assets after the exchange reported a possible security issue; Binance says user funds are safe.
At a glance
- Binance says it is investigating a potential security issue after founder Changpeng Zhao said it looks like a hack.
- Crypto firms froze more than $2.5bn, with Tether freezing over $1.5bn and Circle more than $800m.
- Bitcoin fell 3.2% to under $79,000; Binance says user funds are completely safe.
Binance, the world's largest cryptocurrency exchange, said on Thursday it is investigating reports of a potential security issue, after its founder described the incident as looking like "a hack on Binance".
Cryptocurrency firms had frozen more than $2.5bn in funds by Thursday evening, according to the company. The extent of any damage was not immediately clear, and Binance has not explicitly confirmed that funds were taken. Stablecoin issuers moved quickly to freeze assets.
"Rest assured that user funds are completely safe," a Binance spokesperson said, adding that security teams were reviewing all relevant information with urgency and that updates would follow through official channels once verified.
More than $2.5bn frozen
About two hours after its initial disclosure, Binance wrote on X that the verified total of frozen funds was $2.54bn, and said the figure could rise as its teams work with law enforcement, issuers, blockchain intelligence firms and industry partners to trace and freeze further assets.
Stablecoin providers Tether and Circle each said they froze funds on Thursday. Jeremy Allaire, co-founder and chief executive of Circle, wrote on X that the company had frozen the equivalent of more than $800m tied to the incident "in coordination with law enforcement". Paolo Ardoino, Tether's chief executive, said on X that his company froze the equivalent of more than $1.5bn related to "a potential Binance exchange hack".
Bitcoin falls
The price of bitcoin dropped 3.2% on Thursday afternoon to below $79,000.
Founder's response
Binance was founded in 2017 by Changpeng Zhao, who pleaded guilty in 2023 to a felony related to failing to prevent money laundering on the platform and stepped down as chief executive. Donald Trump pardoned him in 2025.
Zhao wrote on X on Thursday that "User funds are safe!" but said the incident "does look like a hack on Binance". He said he no longer manages Binance, but that as a shareholder he expects all user funds will be fully covered.
Source: The Guardian.
Questions and answers
- Was Binance hacked?
- Binance said it was investigating reports of a potential security issue, and founder Changpeng Zhao said the incident "does look like a hack on Binance". The exchange has not explicitly confirmed that any funds were taken.
- How much crypto was frozen after the Binance incident?
- Binance said the verified total of frozen funds was $2.54bn. Tether said it froze the equivalent of more than $1.5bn and Circle more than $800m.
- What happened to bitcoin's price?
- The price of bitcoin dropped 3.2% on Thursday afternoon to under $79,000, following reports of the potential Binance security issue.
