Binance crypto exchange confirms major hack, more than $2.5 billion frozen

Cryptocurrency exchange Binance confirmed a significant hack on Thursday, indicating that more than $2.5 billion in funds had been frozen to thwart a substantial theft. The world's largest crypto exchange by daily trading volumes issued a series of conflicting messages via X, asserting that user funds remained secure while also stating they would bear any losses.

The extent of the theft was initially unclear, though blockchain analytics firm Chainalysis estimated the amount stolen at around $5.912 billion, almost quadrupling the largest cyberattack in the sector to date, which saw $1.5 billion stolen from Bybit in February 2025. On Friday morning, Binance temporarily halted all deposits and withdrawals as it conducted security checks, froze assets, and collaborated with law enforcement.

The company stated that the figure might rise as it partners with law enforcement, issuers, blockchain intelligence firms, and industry peers to trace and freeze further assets. Former Binance chief Zhao, now a majority shareholder, estimated total losses could surpass $1 billion. Tether CEO Paolo Ardoino said his firm froze approximately $1.6 billion related to the potential hack, while Circle's Jeremy Allaire reported freezing over $800 million in USDC.

Stablecoins, whose value is tied to traditional currencies like the US dollar, remained relatively stable despite the news, with Bitcoin losing almost five percent, Ethereum falling nearly six percent, and BNB plummeting around 10 percent. The hack underscores concerns about AI's potential to undermine cryptography and IT security.