“Rest assured that user funds are completely safe,” Binance said in an emailed statement to TechCrunch, as the world’s largest cryptocurrency exchange investigated a major security incident involving drained hot wallets.
Binance Hot Wallets Drained in Security Incident
Binance confirmed to TechCrunch that it is dealing with a security incident after users reported that funds were being drained from the platform’s internet-connected wallets. The company stated that it is aware of reports regarding a potential security issue and is actively reviewing all relevant information with urgency. Binance spokesperson Ross O’Leary told TechCrunch that the exchange temporarily suspended withdrawals on multiple networks as a precautionary measure.
User funds are safe!It does look like a hack on Binance. Appreciate the quick freeze from Tether (~$971m) and Circle (~$823m).I don't manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered. https://t.co/oufpyNChxI
Independent crypto data providers and market analysts have offered varying estimates regarding the scale of the exploit. Crypto data provider Arkham Intelligence linked nearly $6 billion in digital assets—including bitcoin, ether, solana, and various stablecoins—to 55 wallet addresses tied to the potential exploit. Meanwhile, crypto watchers and traders estimated losses ranging from $1.7 billion to $5.7 billion, though the exchange has not confirmed these numbers, and analysts note the theft may still be ongoing, as reported by TechCrunch and Axios.
Changpeng Zhao and Industry Executives Respond to the Suspected Hack
Hours before the official exchange statement, Binance founder Changpeng Zhao posted on X that the company had likely been hacked and that he expects user funds to be fully covered, although he provided no explanation for that claim. Zhao no longer runs the company but remains its largest shareholder. Kevin March, co-founder of trading firm JPEG Trading, described the situation by stating, “This is unprecedented.” March added that Binance’s large size makes it more insulated than smaller exchanges, noting that the company is capable of covering potential losses through its insurance and balance sheet.
We are aware of differing figures circulating publicly regarding the amount frozen, including references to $1.8 billion.For clarity, the current verified total frozen is $2.54 billion. This figure may continue to increase as our teams work closely with law enforcement,… pic.twitter.com/Kx68qptfXk
Other major cryptocurrency firms moved quickly to mitigate the impact of the breach. Circle Internet Group and Tether froze more than $2.5 billion in funds tied to the incident. Circle CEO Jeremy Allaire stated on social media that his company froze more than $800 million in USD Coin, while Tether CEO Paolo Ardoino announced that his firm froze over $1.5 billion in USDT. Binance co-founder Yi He stated that Ripple helped halt the movement of $200 million linked to the attack. Following the news, bitcoin dropped more than 3% to break below $80,000, while ether fell nearly 4% and solana shed about 3%, according to SOURCE 3.
Polymarket Halts Trading After Third-Party Software Compromise
In a seemingly separate incident on Thursday, prediction market giant Polymarket briefly halted trading and paused withdrawals after a third-party company was compromised. According to security researchers, hackers made off with around $2 million in user funds after attacking a software piece developed by DebugBear, a website monitoring tool that confirmed it was responding to its own security incident.
The suspected Binance breach dwarfs previous cyber thefts in the digital asset sector. If confirmed in the billions, the incident will surpass the 2025 record breach of the Bybit exchange, where hackers stole between $1.4 billion and $1.5 billion in funds attributed by sources to North Korea-linked actors.
Frequently Asked Questions About the Binance Security Incident
How much money was actually stolen from Binance?
The exact total remains unconfirmed by the exchange. Crypto analysts and blockchain tracking firms estimate total losses between $1.7 billion and $5.7 billion, while companies including Tether and Circle have successfully frozen over $2.5 billion in associated funds.
Circle is closely tracking reports of a potential exploit involving Binance. In coordination with law enforcement, we have frozen more than 800M USDC associated with the incident and will continue supporting the investigation.
Who is responsible for the breach?
Binance has not identified who is behind the hack, and the exchange has not reported receiving any direct correspondence from the attackers. Investigations by security teams and blockchain analysts remain ongoing.
Are customer withdrawals working normally?
Binance temporarily suspended withdrawals on multiple networks as a precautionary security measure following the incident. Company representatives have urged users to remain cautious of scams and avoid unofficial links or requests for account information.
Tether froze more than 1.567B USDT related to a potential Binance exchange hack. Protecting the industry and our partners is our main priority.Stay safe everyone.
More on Binance
Coinbase is safe and secure.We’re actively monitoring the Binance situation, and have reached out to their team to offer our support.
As part of our ongoing security measures, Binance Alpha trading has been temporarily suspended – CEX Buy Token/Alpha instant/CEX purchase prediction marketing using fund in spot wallet.Trading will resume once the security issue is resolved.User funds remain safe. We’ll keep… pic.twitter.com/xk9FXB9Hac
User funds are safe. Binance will cover all hacking losses.Deposits and withdrawals are temporarily suspended while our team conducts security checks, freezes funds, and works with law enforcement.We will share a full post-mortem once the investigation is complete. Please…