Binance Investigates Potential Exchange Hack

Binance, the world's largest cryptocurrency exchange, disclosed on Thursday that it is investigating a potential security breach. Changpeng Zhao, the platform's founder, stated that the incident appears to be a hack. By Thursday evening, cryptocurrency firms had frozen more than $2.5 billion in funds linked to the event.

The company noted that it had not yet confirmed whether funds were actually stolen, though its teams were working continuously to resolve the matter. A Binance spokesperson assured customers that user funds remained safe while security personnel reviewed relevant data. The exchange added that it would release verified updates through official channels.

Approximately two hours after the initial alert, Binance posted on X that the verified total of frozen funds had reached $2.54 billion. The company indicated this number could rise as it collaborates with law enforcement and blockchain intelligence firms to trace additional assets. Binance temporarily suspended all deposits and withdrawals to conduct security checks and freeze affected funds.

Major stablecoin providers responded by freezing their own reserves. Jeremy Allaire, co-founder and CEO of Circle, reported freezing more than $800 million in currency in coordination with law enforcement. Paolo Ardoino, CEO of Tether, stated that his company froze over $1.5 billion in currency related to the potential hack.

Market reaction was immediate, with Bitcoin prices dropping 3.2% on Thursday evening to fall under $79,000. Zhao, who founded Binance in 2017, took to X to emphasize that user funds were secure. Although he stepped down as CEO in 2023, he said he expected all user funds to be fully covered as a shareholder.

Zhao pleaded guilty in 2023 to a felony regarding the platform's failure to prevent money laundering. He served a prison sentence for violating the Bank Secrecy Act, becoming the first person sentenced to prison time for such violations. President Donald Trump pardoned Zhao in 2025. Prosecutors had argued that no one had previously violated the law to the extent Zhao did.

Zhao was released from prison last year. He and Binance have supported several crypto ventures associated with the Trump family. The exchange continues to work with industry partners and law enforcement to trace and freeze additional assets.