Binance freezes $2.54 billion after founder calls incident a hack

Binance has frozen $2.54 billion in cryptocurrency funds after its founder identified a security breach as a likely hack. The exchange disclosed the issue on Thursday, stating that the figure is a current verified total that may rise as teams trace additional assets.

Changpeng Zhao, the platform’s founder, posted on X that the incident does look like a hack on Binance. While he no longer manages the company, he noted that as a shareholder he expects all user funds to be fully covered. A Binance spokesperson assured users that their funds are completely safe and said security teams are reviewing all relevant information with urgency.

The exchange temporarily suspended all deposits and withdrawals to conduct security checks. The company is working with law enforcement, issuers, blockchain intelligence firms, and industry partners to trace and freeze more assets. Binance stated that it has not explicitly confirmed that funds were pilfered, though the extent of the damage remains unclear.

Stablecoin providers reacted quickly to the news. Tether CEO Paolo Ardoino announced that his company froze the equivalent of more than $1.5 billion in currency related to the potential hack. Jeremy Allaire, co-founder and CEO of Circle, said the firm froze the equivalent of more than $800 million in currency in coordination with law enforcement.

Market prices adjusted in response to the news. The price of bitcoin dropped 3.2% on Thursday evening, falling to under $79,000. The move reflects immediate market caution as investors assess the impact of the largest exchange’s security incident.

Zhao founded Binance in 2017. He pleaded guilty to a felony in 2023 related to failure to prevent money laundering and stepped down as CEO. He was released from prison last year after serving a sentence for violating the Bank Secrecy Act. President Donald Trump pardoned Zhao in 2025. The company and its founder have been key supporters of some Trump family crypto enterprises.

Binance said it will provide updates through its official channels once it has verified information. The company continues to work around the clock to resolve the issue and coordinate with external partners.