Binance freezes $2.5 billion in funds

Binance paused all deposit and withdrawal services on Thursday as it investigated a potential security issue that prompted industry partners to freeze more than $2.5 billion in assets.

The company’s founder, Changpeng Zhao, characterized the event as a hack in a social media post, stating that the incident "does look like a hack on Binance." Although the exchange had not explicitly confirmed that funds were stolen, it reported that its teams were working around the clock to resolve the situation.

A Binance spokesperson issued a statement assuring customers that their funds were completely safe. The company noted that its security teams were reviewing relevant information with urgency and would provide verified updates through official channels.

The exchange posted on X that the verified total of frozen funds reached $2.54 billion by the evening. Binance indicated that this figure could rise as the company traces and freezes additional assets with the help of law enforcement, issuers, and blockchain intelligence firms.

Stablecoin providers Tether and Circle froze substantial amounts of currency in coordination with the investigation. Paolo Ardoino, CEO of Tether, said the firm froze more than $1.5 billion in currency related to the potential hack. Jeremy Allaire, co-founder and CEO of Circle, reported that his company froze more than $800 million in associated currency.

Bitcoin prices fell 3.2% on Thursday evening, dropping below the $79,000 mark. The market reaction followed the temporary suspension of trading activities on the world's largest cryptocurrency exchange.

Zhao, who founded Binance in 2017, pleaded guilty in 2023 to a felony regarding money laundering controls and stepped down as CEO. He received a presidential pardon in 2025 after being released from prison for violating the Bank Secrecy Act. Zhao said on X that user funds were safe and that, as a shareholder, he expected all user funds to be fully covered.