Binance investigates potential security issue as Tether and Circle freeze funds

The cryptocurrency exchange Binance said on Thursday it is investigating a potential security issue.

Binance said its security teams are reviewing all relevant information with urgency. It said it will give updates through official Binance channels once information is verified. The company said it is working with law enforcement.

Binance said a verified total of $2.54bn in funds had been frozen. Stablecoin issuers Tether and Circle froze funds on Thursday in response to the incident.

Binance founder Changpeng Zhao said in a post on X that the incident "does look like a hack on Binance". Zhao no longer manages Binance. He stepped down as CEO in 2023.

The price of bitcoin fell on Thursday after the incident.

What has been reported

According to the Guardian, Binance had not explicitly confirmed that funds were stolen, and the extent of any damage was not immediately clear.

The Guardian reported that Binance posted the $2.54bn figure on X about two hours after its first disclosure. Binance wrote: "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."

Al Jazeera reported that Binance suspended all deposits and withdrawals "as a precaution" while it investigated. Al Jazeera also quoted Binance as warning: "Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information."

According to Al Jazeera, Zhao is Binance's largest shareholder. According to the Guardian, Zhao founded Binance in 2017. In 2023 he pleaded guilty to a felony related to his failure to prevent money laundering on the platform. Donald Trump pardoned him in 2025.

What is disputed

• Frozen funds: Reuters reported that Circle and Tether froze over $2.38bn in stablecoin currency. Binance put the verified total across cryptocurrency firms at $2.54bn. The figures may differ in scope and timing.
• Bitcoin's fall: The Guardian reported a 3.2% drop on Thursday afternoon to under $79,000. Al Jazeera reported a fall of about 5% to below $77,000. The figures may reflect different times.

What each side says

• Binance: A spokesperson said, according to the Guardian: "Rest assured that user funds are completely safe."
• Changpeng Zhao: The Guardian quoted him as writing "User funds are safe!" Al Jazeera quoted him as writing: "I don't manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered."
• Circle: CEO Jeremy Allaire wrote on X that Circle froze more than the equivalent of $800m associated with the incident, "in coordination with law enforcement", according to the Guardian.
• Tether: CEO Paolo Ardoino said on X that Tether froze the equivalent of more than $1.5bn related to "a potential Binance exchange hack", according to the Guardian.

What remains unclear

The reports reviewed by Vocemundi do not include confirmation from Binance that a hack occurred. They do not describe how much, if anything, was taken, how the incident happened, or who may be responsible. They do not name the law enforcement agencies involved or say when deposits and withdrawals will resume.

Analysis

The central question is whether a breach occurred, and how large any losses were. So far, the main claim of a hack comes from Zhao, who says he no longer manages the company. If Binance confirms losses, attention may turn to how it would cover them. Zhao's statement is an expectation, not a company commitment. If no losses are confirmed, the freezes may be seen as a precaution. In either case, the speed of action by stablecoin issuers is likely to draw attention to their ability to freeze assets. All reports so far rely on statements from the companies involved, not independent verification.

Produced by the Vocemundi newsroom with AI assistance.