Key takeaways:
- Binance froze at least $2.54 billion in assets, suspended deposits and withdrawals, and said users’ funds were safe.
- Changpeng Zhao said the incident appeared to be a hack; Circle said it froze more than $800 million in linked assets.
- Bitcoin fell about 5% and dropped below $77,000 after the incident, Al Jazeera reported.
Binance has frozen at least $2.54 billion in digital assets and suspended all deposits and withdrawals while it investigates what it calls a “potential security issue.” The world’s largest cryptocurrency exchange by daily trading volume said Thursday that it was working with law enforcement and that users’ funds were safe.
The exchange described the suspension as a precaution while its security teams review the incident. Binance said it would “cover all losses,” according to the BBC, and warned that the total value of frozen assets could rise as it works with partners to trace and seize more funds.
“It does look like a hack on Binance,” founder and former chief executive Changpeng Zhao wrote on X. Zhao stepped down as CEO in 2023 and no longer manages the exchange, but remains its largest shareholder.
“I don’t manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered,” Zhao wrote.
Zhao said two other cryptocurrency companies, Tether and Circle, had frozen around $1.7 billion in stolen assets. Circle chief executive Jeremy Allaire said his company had frozen more than $800 million in assets linked to the incident and was “closely tracking reports of a potential exploit involving Binance.” Circle issues and co-created USDC, a major U.S. dollar-backed cryptocurrency. Tether did not immediately respond to the BBC’s queries.
The price of Bitcoin fell about 5% after the incident, dropping below $77,000, Al Jazeera reported.
Binance has not released a full account of what happened. “Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information,” the company said in a statement to Al Jazeera.
The exchange urged users to be wary of scams while the investigation continues. “Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information,” it said.
Binance said its teams were working around the clock and would publish a full post-mortem after the investigation. For now, deposits and withdrawals remain suspended as the company carries out security checks.
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