Binance Investigates Security Breach After Founders Freeze Over $2.3 Billion in Funds

Binance is investigating a security incident that its founder believes was a hack.

On Thursday evening, stablecoin issuers Tether and Circle moved to freeze specific funds linked to the exchange. This action occurred while Binance was still determining the full scope of the damage. The freezes totaled more than $2.3 billion in equivalent currency value.

Jeremy Allaire, the co-founder and CEO of Circle, stated on X that his company froze over $800 million in currency related to the incident. He noted that this step was taken in coordination with law enforcement. Paolo Ardoino, the CEO of Tether, said on X that his firm froze more than $1.5 billion in currency connected to what he described as a potential Binance exchange hack.

Binance has not explicitly confirmed that user funds were stolen. A company spokesperson said in a statement that user funds are completely safe. The spokesperson added that security teams are reviewing all relevant information with urgency. The company promised to provide updates through official channels once it has verified information.

Changpeng Zhao, who founded the exchange in 2017, commented on the situation on X. He stated that user funds are safe but added that the incident does look like a hack on Binance. Zhao said he does not manage the company anymore but expects all user funds will be fully covered as a shareholder.

Zhao pleaded guilty to a felony in 2023 for failing to prevent money laundering on the platform. He stepped down as CEO after pleading guilty and was later sentenced for violating the Bank Secrecy Act. He became the first person sentenced to prison time for such violations. Prosecutors said no one had violated those regulations to the extent Zhao did. He was released from prison last year, and President Donald Trump pardoned him in 2025.

The price of bitcoin dropped 3.2 percent on Thursday evening to fall under $79,000. The market reaction followed the announcements from the stablecoin issuers and Binance's confirmation of the ongoing investigation.