Key Takeaways
- • Stablecoin issuers Tether and Circle have frozen funds totaling more than $3bn tied to a potential security incident at Binance, according to The Guardian.
- • Circle CEO Jeremy Allaire said the company froze more than the equivalent of $800m in currency associated with the incident, in coordination with law enforcement.
- • Tether CEO Paolo Ardoino said the company froze the equivalent of more than $1.5bn related to a potential Binance exchange hack.
- • Binance has not explicitly confirmed that funds were stolen and says user funds are safe; founder Changpeng Zhao said the incident "does look like a hack on Binance."
- • Bitcoin fell 3.2% on Thursday afternoon to under $79,000 as the news spread.
Summary
Binance, the world's largest cryptocurrency exchange, said on Thursday it is investigating reports of a potential security issue. Founder Changpeng Zhao said the incident "does look like a hack on Binance," while the company said cryptocurrency firms had frozen about $3bn in funds by Thursday evening, according to The Guardian.
The exact extent of any damage remained unclear, and Binance had not explicitly confirmed that funds had been taken. Stablecoin issuers moved quickly in response. Tether and Circle each said they froze funds on Thursday. Circle CEO Jeremy Allaire wrote on X that the company had frozen more than the equivalent of $800m in currency associated with the incident, in coordination with law enforcement. Tether CEO Paolo Ardoino said on X that the company froze the equivalent of more than $1.5bn related to a potential Binance exchange hack.
Binance said in a social media statement that its teams are working with law enforcement, issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets, and that "user funds are safe." Zhao, who founded Binance in 2017, stepped down as CEO after pleading guilty in 2023 to a felony related to failures to prevent money laundering on the platform. He noted he no longer manages Binance but said, "as a shareholder, I expect all user funds will be fully covered."
The market reaction was immediate. Bitcoin dropped 3.2% Thursday afternoon to under $79,000, according to the report.
The exact extent of any damage remained unclear, and Binance had not explicitly confirmed that funds had been taken. Stablecoin issuers moved quickly in response. Tether and Circle each said they froze funds on Thursday. Circle CEO Jeremy Allaire wrote on X that the company had frozen more than the equivalent of $800m in currency associated with the incident, in coordination with law enforcement. Tether CEO Paolo Ardoino said on X that the company froze the equivalent of more than $1.5bn related to a potential Binance exchange hack.
Binance said in a social media statement that its teams are working with law enforcement, issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets, and that "user funds are safe." Zhao, who founded Binance in 2017, stepped down as CEO after pleading guilty in 2023 to a felony related to failures to prevent money laundering on the platform. He noted he no longer manages Binance but said, "as a shareholder, I expect all user funds will be fully covered."
The market reaction was immediate. Bitcoin dropped 3.2% Thursday afternoon to under $79,000, according to the report.
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