Binance's possible hack triggers US$3 billion freeze in crypto assets
KUALA LUMPUR: Binance, the world’s largest cryptocurrency exchange, said on Thursday it had frozen US$3 billion in crypto assets as it investigated a potential security breach, with stablecoin issuers Circle and Tether also freezing related assets.
On Thursday, Binance, the world's largest cryptocurrency exchange, froze US$3 billion in crypto assets as it investigated a potential security breach. Circle and Tether, stablecoin issuers, also froze related assets. Binance co-founder Yi He stated that Binance would cover all hacking losses, but did not provide further details.
The incident caused immediate market impact, with Bitcoin and ether dropping 2% and 2% respectively. BNB fell over 8%. Coinbase and Strategy shares also declined. Binance froze up to US$3 billion, potentially increasing as it works with law enforcement and industry partners. Binance's CEO, Changpeng Zhao, confirmed the issue as a possible hack.
The exchange operates a secure asset fund to protect user assets in case of breaches. Industry experts predict that the growing sophistication of AI could make it harder to counter hacks, leading users to move away from smaller exchanges.
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