Crypto platform Binance confirms major hack, more than $2.5bn frozen - Yahoo Finance Singapore
Cryptocurrency platform Binance confirmed Thursday it had been hacked, with more than $2.5 billion in funds frozen to prevent a massive theft.
The company posted a series of messages on X, insisting that "user funds are completely safe" while also stating it would "cover all losses." The scope of the heist remained unclear initially, but blockchain analytics firm Chainalysis estimated the amount stolen at approximately $5.912 billion at the time of theft.
Security Measures
At about 0030 GMT Friday, Binance announced all deposits and withdrawals had been "temporarily suspended while our team conducts security checks, freezes funds, and works with law enforcement." The company noted the frozen amount might increase as teams trace additional assets with industry partners.
This figure may continue to increase as our teams work closely with law enforcement, issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets.
Industry Response
Former Binance chief Changpeng Zhao, now a majority shareholder, confirmed "it does look like a hack on Binance" and estimated total losses could be "a bit higher" than $1 billion. Tether CEO Paolo Ardoino said his firm froze about $1.6 billion "related to a potential Binance exchange hack," while Circle boss Jeremy Allaire reported freezing more than $800 million in USDC.
USDT and USDC are both "stablecoins"—digital currencies pegged to the US dollar. Neither Binance nor industry observers immediately explained how the cyberattack occurred. The US Department of Justice and FBI did not respond to requests for comment.
Market Impact
Several hours before Binance's confirmation, industry observers reported hackers had accessed the platform. Most major cryptocurrency prices fell on the news, with bitcoin losing nearly five percent, Ethereum dropping nearly six percent, and BNB tumbling nearly 10 percent. Stablecoins remained stable by definition.
The attack comes as concerns grow that artificial intelligence advancements could compromise cryptography and IT security protocols. Binance continues working with authorities to secure the platform and determine the full extent of the breach.
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