Binance Freezes $2.5 Billion in Crypto Funds Amid Security Probe
The world's largest exchange suspended deposits and withdrawals while stablecoin issuers Tether and Circle locked up billions of dollars following a suspected hack.
By Pedro Barnes ·
Deposits and withdrawals were suspended on Thursday as Binance, the largest cryptocurrency exchange globally, paused operations to investigate a potential security breach. The exchange confirmed that over $2.5 billion in funds had been frozen by various crypto firms by the end of the day. This halt in activity leaves users unable to move their assets while the company works with law enforcement and industry partners to trace the source of the issue.
Changpeng Zhao, the founder of Binance, acknowledged the severity of the event in a post on X. He stated that the incident "does look like a hack on Binance" and assured followers that "User funds are safe!" Zhao added that he expects all user funds will be fully covered, despite no longer managing the company. A Binance spokesperson echoed this sentiment in a written statement, telling users to "Rest assured that user funds are completely safe" while teams review the data.
The financial impact of the freeze extends beyond the exchange itself. Stablecoin providers Tether and Circle reported that they locked up substantial amounts of currency in response to the incident. Tether CEO Paolo Ardoino said the company froze the equivalent of more than $1.5 billion in currency linked to the potential hack. Circle CEO Jeremy Allaire reported that his firm froze more than $800 million in currency in coordination with law enforcement.
Market reactions were immediate. The price of bitcoin fell by 3.2% on Thursday evening, dropping below the $79,000 mark. Binance noted on its X account that the verified total of frozen funds stood at $2.54 billion, a figure the company expects to rise as it works to trace additional assets. The exchange described its teams as working around the clock to resolve the issue and provide verified updates through official channels.
Zhao, who founded Binance in 2017, has a history with U.S. regulators. He pleaded guilty to a felony in 2023 for failing to prevent money laundering and violated the Bank Secrecy Act, making him the first person sentenced to prison for such violations. He was released from prison last year and received a presidential pardon from Donald Trump in 2025. Prosecutors had previously noted that no one had violated the Bank Secrecy Act regulations to the extent Zhao did. The exchange and Zhao remain key supporters of several Trump family crypto ventures.
Binance said it would continue to coordinate with blockchain intelligence firms, issuers, and law enforcement to identify and freeze more assets. The company emphasized that it would share confirmed information via its official channels as soon as it was available.
