Crypto worth billions frozen after suspected Binance hack

Binance, the world's largest cryptocurrency exchange, has frozen approximately $3 billion worth of digital assets to protect them from potential theft following a suspected security breach. As part of an ongoing investigation, the company has suspended all deposits and withdrawals while its teams conduct security checks. Binance has pledged to cover all losses incurred during the hack and has assured users that their funds are secure.

Two other major crypto platforms, Tether and Circle, have also taken steps to safeguard their users' assets by freezing a combined total of around $2.4 billion in response to the potential Binance hack. Binance has not disclosed the exact amount stolen, but some experts estimate the figure to exceed $5 billion. The security incident specifically affects Binance.com, while Binance.US, a smaller platform catering to American residents, remains unaffected.

Former Binance CEO Changpeng Zhao stated that the security breach appears to be a hack, though he no longer manages the company. Digital asset advisory firm Glassnode estimated the total value of the hacked crypto to be $5.3 billion, while blockchain analytics firm Chainalysis estimated the stolen amount to be over $5.9 billion.

The incident has caused significant market volatility, with Bitcoin dropping around 5% and other major cryptocurrencies like Ethereum and Solana also experiencing sharp declines. Circle CEO Jeremy Allaire stated that his firm has frozen $800 million in assets related to the potential Binance hack, as the company issues and co-creates the USDC, a major US dollar-backed cryptocurrency.

Tether CEO Paolo Ardoino said his firm has frozen $1.6 billion in assets connected to the incident, emphasizing that protecting the industry and partners is their top priority.