Binance, the world’s largest cryptocurrency exchange, has confirmed it is investigating a significant security incident after users reported unauthorized withdrawals from the platform. The exchange temporarily suspended withdrawals on multiple blockchain networks as a precautionary measure while its security teams review the situation.
Ross O’Leary, a spokesperson for Binance, stated that the pause was implemented following a security incident. The company emphasized in an emailed statement that user funds remain safe and that the exchange is working urgently to resolve the issue. Binance advised users to remain vigilant against scams and to ignore any unofficial requests for account information.
Billions in Funds Frozen by Stablecoin Issuers
The scale of the incident appears substantial, with financial technology giant Circle and stablecoin issuer Tether taking immediate action to contain the movement of stolen assets. Circle froze approximately $800 million in Tether (USDT) as it moved through its networks. Tether itself froze about $1.56 billion in funds linked to the breach.
Crypto security analysts estimate that at least $2 billion has been drained from Binance’s hot wallets. Hot wallets are digital currency storage systems connected to the internet, used for processing daily transactions. Some industry observers suggest the total loss could exceed $5.7 billion, though these figures have not been verified. The theft may still be ongoing, and it remains unclear who is responsible for the attack.
Changpeng Zhao, the founder of Binance and its largest shareholder, posted on X that the company had likely been hacked. He expressed confidence that user funds would be fully covered, although he did not provide details on how the exchange plans to compensate users. Binance itself has not yet confirmed the total amount of funds lost or identified the perpetrators.
Historic Scale of the Crypto Theft
If the initial estimates prove accurate, this event would rank among the largest cryptocurrency thefts in history. The 2025 breach of Bybit, where hackers stole $1.4 billion, was previously considered a record. That incident was attributed to North Korean state-sponsored actors. This new breach potentially dwarfs that figure, signaling a severe escalation in threats facing major digital asset exchanges.
The incident occurred on the same day that prediction market platform Polymarket briefly halted trading. Polymarket confirmed that a third-party software provider, DebugBear, had been compromised, leading to the theft of approximately $2 million in user funds. This separate event highlights the broader vulnerabilities in the crypto infrastructure ecosystem.
Binance has promised to provide further updates through its official channels once more information is verified. The exchange continues to operate deposits and trading functions while withdrawals remain paused. Users are encouraged to monitor official announcements for the latest status on the investigation.
Source: TechCrunch
