Key Takeaways
- • Binance said Thursday it is investigating reports of a potential security issue, with founder Changpeng Zhao stating the incident "does look like a hack on Binance."
- • Cryptocurrency firms had frozen more than $2.5 billion in funds by Thursday evening, with Binance's verified frozen total reaching $2.54 billion in a later X post.
- • Stablecoin issuers Tether and Circle each froze funds: Tether reported more than $1.5 billion equivalent, and Circle more than $800 million, both in coordination with law enforcement.
- • Binance temporarily suspended all deposits and withdrawals while conducting security checks; the full extent of any losses had not been confirmed.
- • Bitcoin fell 3.2% Thursday evening to under $79,000.
Summary
Binance, the world's largest cryptocurrency exchange, said Thursday it is investigating reports of a potential security issue. Founder Changpeng Zhao said on X that the incident "does look like a hack on Binance," while stressing that user funds are safe and that, as a shareholder, he expects all user funds to be fully covered. The company said its teams are "working around the clock" to resolve the matter, and a spokesperson said "user funds are completely safe." Binance has not explicitly confirmed that funds were stolen, and it was not immediately clear how much damage hackers may have caused.
According to the AP, cryptocurrency firms had frozen more than $2.5 billion in funds by Thursday evening. About two hours after its initial disclosure, Binance wrote on X that the current verified total of frozen funds was $2.54 billion, adding that the figure may rise as its teams work with law enforcement, token issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets. Binance also said all deposits and withdrawals are temporarily suspended while it conducts security checks, freezes funds and works with law enforcement.
Stablecoin providers Tether and Circle each said they froze funds in response. Circle co-founder and CEO Jeremy Allaire wrote on X that the company froze the equivalent of more than $800 million associated with the incident in coordination with law enforcement. Tether CEO Paolo Ardoino said on X that the company froze more than $1.5 billion equivalent related to "a potential Binance exchange hack."
Market reaction was visible: the price of bitcoin dropped 3.2% Thursday evening to under $79,000.
Background: Binance was founded in 2017 by Zhao, who pleaded guilty in 2023 to a felony tied to failures to prevent money laundering on the platform and stepped down as CEO. President Donald Trump pardoned him in 2025. The AP notes Zhao was the first person sentenced to prison time for Bank Secrecy Act violations of this kind, and that Zhao and Binance have been key supporters of some Trump family crypto enterprises.
According to the AP, cryptocurrency firms had frozen more than $2.5 billion in funds by Thursday evening. About two hours after its initial disclosure, Binance wrote on X that the current verified total of frozen funds was $2.54 billion, adding that the figure may rise as its teams work with law enforcement, token issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets. Binance also said all deposits and withdrawals are temporarily suspended while it conducts security checks, freezes funds and works with law enforcement.
Stablecoin providers Tether and Circle each said they froze funds in response. Circle co-founder and CEO Jeremy Allaire wrote on X that the company froze the equivalent of more than $800 million associated with the incident in coordination with law enforcement. Tether CEO Paolo Ardoino said on X that the company froze more than $1.5 billion equivalent related to "a potential Binance exchange hack."
Market reaction was visible: the price of bitcoin dropped 3.2% Thursday evening to under $79,000.
Background: Binance was founded in 2017 by Zhao, who pleaded guilty in 2023 to a felony tied to failures to prevent money laundering on the platform and stepped down as CEO. President Donald Trump pardoned him in 2025. The AP notes Zhao was the first person sentenced to prison time for Bank Secrecy Act violations of this kind, and that Zhao and Binance have been key supporters of some Trump family crypto enterprises.
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