Crypto worth billions frozen after suspected Binance hack

Cryptocurrency exchange Binance froze digital assets worth approximately $3 billion to safeguard against theft after a potential security breach, according to the company's official announcement on Thursday. The firm suspended all deposits and withdrawals as it conducts security checks and pledges to cover all losses. Two other major crypto platforms, Tether and Circle, also froze about $2.4 billion in assets in response to the potential Binance hack.

Binance has not disclosed the exact amount stolen, but industry experts estimate the figure could exceed $5 billion.

The security incident specifically concerns Binance.com, while Binance.US, a smaller platform catering to American residents, reported that its services remain unaffected. Changpeng Zhao, Binance's former CEO, described the situation as a potential hack on X, his social media platform. He remains a key shareholder despite no longer managing the firm.

Digital asset advisory firm Glassnode estimated the hack involved $5.3 billion in crypto, while blockchain analytics firm Chainalysis estimated the stolen amount to be over $5.9 billion.

Binance stated that the frozen funds amount may rise as it collaborates with law enforcement and other partners to trace and recover additional assets. The company assured users that their funds are secure and urged them to rely only on official Binance channels for updates. Binance is the world's largest crypto exchange by daily trading volumes. Bitcoin experienced a 5% drop in value following the exchange's alerts, while other major cryptocurrencies, including Ethereum and Solana, also suffered sharp declines.

Changpeng Zhao, Binance's former CEO, emphasized that the incident appeared to be a hack. Circle CEO Jeremy Allaire stated that his firm is closely monitoring the situation and has frozen over $800 million in assets related to the potential Binance exchange hack. Circle is the issuer and co-creator of the USDC, one of the largest US dollar-backed cryptocurrencies globally.

Tether CEO Paolo Ardoino announced that his firm has frozen around $1.6 billion in assets connected to the potential Binance hack, emphasizing the importance of protecting the industry and its partners.