Binance, the World’s Largest Crypto Exchange, Freezes $2.54 Billion Amid Suspected Hack
Binance, the largest cryptocurrency exchange globally, has frozen $2.54 billion in crypto assets amid an investigation into a potential security breach. The exchange’s co-founder, Yi He, confirmed that Binance will cover all losses resulting from the incident. Stablecoin issuers Circle and Tether have also frozen assets linked to the situation, with Tether freezing nearly $1.57 billion and Circle over $800 million.
As Binance collaborates with law enforcement, token issuers, and blockchain intelligence firms, the amount of frozen assets may increase. Co-founder Changpeng Zhao indicated on social media that the incident appears to be a hack. Binance is conducting security checks and plans to resume withdrawals once the issue is resolved, assuring users that their funds are safe. The exchange has temporarily suspended trading on its Binance Alpha platform as a precautionary measure.
World Liberty Financial, associated with former U.S. President Donald Trump, reported working with crypto custodian BitGo to freeze funds stolen in what it described as a Binance hack. Yi He stated that $27 million in stablecoins and approximately $2 million in World Liberty tokens had been frozen. Additionally, Ripple has frozen around $200 million in funds, with senior vice president Jack McDonald confirming the company is monitoring the situation closely.
Blockchain intelligence firm Arkham’s CEO, Miguel Morel, indicated that billions of dollars may have been stolen from Binance by an unknown attacker, although the exact cause remains unconfirmed. The incident reportedly began around 4:30 PM EST and is still ongoing. This breach adds to a troubling trend in the cryptocurrency sector, where attackers stole $2.9 billion in nearly 150 incidents last year. Authorities have raised concerns about organized crime groups increasingly using cryptocurrencies for cross-border transactions outside traditional financial systems.
Binance has over 300 million registered users and approximately $160 billion in assets under custody, according to its 2024 annual report. Binance.US, a separate entity, stated it was not affected by the security incident, and Coinbase also reported no impact while monitoring the situation. In a related event, prediction market operator Polymarket temporarily halted trading due to a security issue with a third-party provider but later resumed trading and pledged to reimburse affected traders.
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