Binance, a leading player in the cryptocurrency market, announced on Thursday its decision to freeze approximately $3 billion (£2.24 billion) in digital assets to safeguard against potential theft amid a security investigation. The exchange reported that all deposits and withdrawals have been temporarily halted as security measures are undertaken, affirming that it will “cover all losses” incurred during this incident.
In a following move, two other prominent cryptocurrency platforms, Tether and Circle, disclosed that they have collectively frozen around $2.4 billion of assets in response to potential breaches linked to Binance.
Although Binance has not confirmed the exact amount believed to have been stolen, various cryptocurrency experts estimate the figure to be significantly above $5 billion. The ongoing security issue primarily involves Binance.com, while its smaller counterpart, Binance.US, which caters exclusively to American users, stated that it is unaffected by the situation.
Changpeng Zhao, Binance’s former CEO and key shareholder, commented on the incident via X, suggesting that it indeed appears to be a hack. Estimates from Glassnode, a digital asset advisory firm, indicate that the hack may involve around $5.3 billion in stolen assets, while Chainalysis, a New York-based blockchain analytics company, has assessed that the total could exceed $5.9 billion. This figure nearly quadruples the value of crypto stolen in a high-profile hack of Bybit in 2025, which involved suspected North Korean hackers.
According to Binance, the frozen assets may increase as the company collaborates closely with law enforcement and other partners to identify and recover additional stolen funds.
In a public statement, Binance reassured users that their funds are secure, stating, “We are working around the clock and will share a full post-mortem once the investigation is complete. Please rely only on official Binance channels for updates.”
As the news unfolded, the price of Bitcoin dipped around 5%, with other major cryptocurrencies like Ethereum and Solana also experiencing sharp declines.
Circle CEO Jeremy Allaire highlighted that his firm is “closely tracking reports of a potential exploit involving Binance” and confirmed freezing more than $800 million in assets connected to the incident. Additionally, Tether‘s CEO, Paolo Ardoino, reported that his company has frozen around $1.6 billion in assets related to this security breach, emphasizing that their primary concern is the protection of the industry and their partners.
Notably, several industry observers had raised alarms about a possible hack on Binance hours before the exchange publicly acknowledged the security breach.
Editor’s Take
This significant security incident raises concerns about the safety of digital assets on major exchanges. As Binance is a cornerstone of the crypto sector, the implications of this breach could reverberate throughout the industry, affecting user trust, market stability, and future regulatory scrutiny. Additionally, this situation highlights the importance of robust security measures in an increasingly digital landscape, driving businesses and developers to prioritize user protection.
Source: www.bbc.co.uk
