Binance freezes $2.5 billion as it investigates potential security breach

Binance said Thursday it is investigating a potential security issue, and that crypto firms have frozen more than $2.5 billion in funds. The exchange verified the total of $2.54 billion in an X post and said the frozen amount may keep rising.

Binance has temporarily suspended deposits and withdrawals while it runs security checks, freezes funds and works with law enforcement. The exchange has not said how much, if anything, was taken, and it has not confirmed that funds were pilfered. It says the extent of possible damage is not yet clear.

Binance said user funds are "completely safe." It also said it will cover all losses from the SAFU fund and the company's own funds. Initial investigation points to a compromised laptop belonging to a DevOps engineer, which Binance says allowed an attacker to reach a service container and submit unauthorized withdrawal transactions.

Stablecoin issuers have moved too. Tether froze the equivalent of more than $1.5 billion, according to CEO Paolo Ardoino. Circle froze more than $800 million, according to CEO Jeremy Allaire, in coordination with law enforcement.

Bitcoin fell 3.2 per cent Thursday evening to under $79,000.

Binance was founded in 2017 by Changpeng Zhao, who pleaded guilty in 2023 to a felony tied to failing to prevent money laundering on the platform and stepped down as CEO. Zhao, who was sentenced to prison for Bank Secrecy Act violations, was pardoned by President Donald Trump in 2025. Zhao wrote on X that "User funds are safe!" and said that as a shareholder he expects all user funds will be fully covered. He no longer manages the company.