Binance Investigates Security Breach Affecting $6.3 Billion

Binance, the world's largest cryptocurrency exchange, reported on Thursday that a potential security issue has impacted approximately $6.3 billion in assets. The company stated it is currently investigating the incident, which founder Changpeng Zhao described as looking like a hack. Binance has suspended all deposits and withdrawals while its security teams conduct checks and freeze funds.

The exchange detailed the suspected entry point in a post on X, noting that the incident may involve a compromised DevOps engineer's laptop. This access allegedly allowed an attacker to reach a service container and submit unauthorized withdrawal transactions. Binance stated it found no evidence of a wallet private key leak. The company said it has worked with blockchain partners to freeze affected assets, reporting that roughly $3 billion have been frozen on-chain so far.

Major stablecoin providers reacted swiftly to the news. Jeremy Allaire, co-founder and CEO of Circle, wrote on X that the company froze the equivalent of more than $800 million in currency associated with the incident in coordination with law enforcement. Paolo Ardoino, CEO of Tether, announced on X that his company froze the equivalent of more than $1.5 billion in currency related to the potential Binance exchange hack.

Zhao, who stepped down as CEO in 2023 after pleading guilty to a felony related to money laundering, posted on X to reassure customers. He stated that user funds are safe and that as a shareholder, he expects all user funds will be fully covered. Trump pardoned Zhao in 2025. Zhao was released from prison last year after serving time for violating the Bank Secrecy Act, a law requiring U.S. financial institutions to monitor transactions and file reports of suspicious activity.

A Binance spokesperson said in a statement that user funds are completely safe. The company added that its teams are working around the clock to resolve the issue and will provide updates through official channels once information is verified. The exchange said it is working closely with law enforcement, issuers, and blockchain intelligence firms to trace and freeze additional assets.

The market reacted to the news on Thursday evening. The price of bitcoin dropped 3.2 percent, falling under $79,000. Binance said it will share more technical details once the investigation is complete and the facts are fully verified. The company noted that the estimated total impact sits at around $6.3 billion, a figure that could rank among the largest security incidents on record for a crypto exchange.