Secret Service, FBI Join Binance Hack Probe as Circle Freezes $823 Million

Binance is working with the FBI and U.S. Secret Service after hackers stole $6.4 billion from the cryptocurrency exchange, according to Reuters. The massive breach has prompted swift action from law enforcement and industry partners to recover the stolen funds and identify the perpetrators.

A person familiar with the matter told Reuters that Binance was cooperating with law enforcement agencies around the world, including both U.S. agencies. The FBI confirmed it was aware of the incident and was working with public and private partners to assess its scope and coordinate investigative steps.

Stablecoin Companies Freeze Assets

Circle, the company behind USDC stablecoin, has frozen approximately $823 million in USDC connected to the attack. Tether, which issues the competing USDT stablecoin, froze another $975.1 million in USDT. Both companies can blacklist specific blockchain addresses, preventing the tokens from being transferred out of those wallets.

Circle CEO Jeremy Allaire said the company was coordinating with law enforcement. We have frozen more than $800 million in USDC associated with the Binance incident and will continue supporting the investigation, he stated.

North Korean Hackers Suspected

Blockchain intelligence firms TRM Labs and Chainalysis have attributed the attack to TraderTraitor, a North Korean hacking group previously linked to the $1.5 billion Bybit hack in February 2025. The same group has been connected to multiple high-profile cryptocurrency thefts.

North Korean attackers have targeted Binance before, including attempts to infiltrate the exchange by posing as job applicants. In 2025, Binance Chief Security Officer Jimmy Su revealed that North Korean operatives were contacting employees on LinkedIn daily, sometimes using fake interviews to deliver malware.

Binance Response and Recovery

Binance has committed to covering all losses using company funds and its Secure Asset Fund for Users, an emergency reserve designed to protect customers during security breaches. CEO Richard Teng announced the company had reserved more than $6.34 billion to cover the stolen assets, with approximately $3 billion already located or frozen with industry partners' help.

The exchange initially suspected a compromised laptop belonging to a DevOps engineer provided attackers with access, but has since identified additional breach points. Withdrawals remain suspended while Binance reviews its security infrastructure, with the company targeting a resumption by Sunday.