Binance has reportedly been hacked, billions in crypto stolen

Binance, a prominent cryptocurrency exchange, has reportedly experienced a security breach that resulted in the theft of over $5.7 billion worth of digital assets. The exchange announced the potential issue on Thursday, freezing withdrawals in response. The incident came shortly after Tether and Circle Group, two digital finance companies, froze significant amounts of their stablecoins due to a possible hack.

Binance's official X account first acknowledged the security issue at 5:15 p.m. ET / 2:15 p.m. PT. Later reports indicated that Tether and USD Coin stablecoins had been frozen, amounting to $971 million and $823 million, respectively. Binance has since stated that a total of $2.54 billion has been frozen, though this figure may increase as assets are traced.

Our teams are actively investigating the alleged security issue, and regular updates will be provided through official Binance channels as soon as verified information becomes available. As of now, the specifics of the hack remain undisclosed. The hacker's wallet reportedly holds $1.77 billion in Tether, $1.44 billion in Bitcoin, $1.01 billion in Ethereum, and over a billion more spread across other cryptocurrencies such as USD Coin, Tron, and Solana.

These stolen assets were reportedly drained from hot wallets, which are internet-connected and more susceptible to hacking compared to offline cold wallets. However, hot wallets are more convenient for conducting transactions on exchanges like Binance.

Binance co-founder and former CEO Changpeng Zhao acknowledged that the incident appears to be a hack but expressed confidence in user fund coverage. He stated that all user funds will be fully covered, either as a Binance user or as a shareholder.

Binance reassured users that withdrawals will resume once the security issue is fully resolved, and user funds remain safe. The exchange also announced a temporary suspension of Binance Alpha, a platform dedicated to early-stage crypto projects, pending the resolution of the security issue.