Binance flags 'potential security issue,' says crypto firms froze more than $2.5 billion - Yahoo Finance
Binance, the world's largest cryptocurrency exchange, is investigating a potential security issue as crypto firms froze more than $2.5 billion in funds.
The company said cryptocurrency firms had frozen more than $2.5 billion in funds by Thursday evening. Binance had not explicitly confirmed that funds had been pilfered, though founder Changpeng Zhao stated the incident "does look like a hack on Binance."
"Rest assured that user funds are completely safe," a Binance spokesperson said in a statement. The company wrote on its X account that the verified total of frozen funds was $2.54 billion, with potential for further increases as teams trace additional assets.
Funds Frozen
Stablecoin providers Tether and Circle each confirmed they froze funds in response to the incident. Circle CEO Jeremy Allaire said they froze more than $800 million, while Tether's Paolo Ardoino reported freezing over $1.5 billion in currency related to "a potential Binance exchange hack."
Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information.
Market Impact
The price of bitcoin dropped 3.2% Thursday evening to under $79,000. Binance suspended all deposits and withdrawals while conducting security checks and working with law enforcement.
Zhao, who pleaded guilty in 2023 to money laundering charges and was pardoned by Trump in 2025, posted that "User funds are safe!" and as a shareholder expects "all user funds will be fully covered."
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