Binance Faces Potential $6.3 Billion Crypto Hack; $2.54 Billion In Assets Frozen

World’s largest cryptocurrency exchange suspends withdrawals and Binance Alpha trading amid security checks; Bitcoin falls more than 4% as Tether and Circle freeze billions in assets

Cryptocurrency giant Binance is investigating a major security incident that may have affected assets worth approximately $6.3 billion, after reports emerged that an attacker had drained billions of dollars in cryptocurrency from its hot wallets.

The world’s largest cryptocurrency exchange temporarily suspended withdrawals while its security teams investigated the incident. Binance said about half of the affected assets had been frozen with assistance from other cryptocurrency platforms, adding that it would cover all losses.

The exchange reported that approximately $2.54 billion in assets had been frozen, with the figure potentially increasing as investigators trace the funds. In a separate update, Binance said early checks suggested a compromised engineer’s laptop may have enabled an attacker to make unauthorised withdrawals.

The incident concerns Binance.com, while Binance.US, which serves American residents, said its platform was unaffected.

Binance Suspends Withdrawals And Alpha Trading

Binance acknowledged reports of a potential security issue on Thursday, saying its security teams were urgently reviewing the available information.

The exchange said withdrawals would resume once the security issue had been resolved and the platform was confirmed to be secure. It also suspended trading on Binance Alpha, a platform that highlights early-stage cryptocurrency projects not yet listed on the main exchange.

Binance sought to reassure users that their funds remained safe and said it would release a full report after completing its investigation.

The company also said it was working with law enforcement agencies to identify those responsible and bring them to justice. It urged users to follow only its official communication channels for verified updates.

Tether And Circle Freeze Billions In Assets

Two major cryptocurrency companies, Tether and Circle, froze substantial amounts of digital assets linked to the suspected attack.

Tether reportedly froze around $1.6 billion in assets associated with the incident, while Circle froze more than $800 million. Together, the companies’ actions accounted for approximately $2.4 billion in frozen assets, although reported figures have varied as the investigation has progressed.

Tether chief executive Paolo Ardoino said protecting the cryptocurrency industry and its partners was the company’s priority. Tether issues USDT, one of the world’s largest dollar-backed cryptocurrencies.

Circle chief executive Jeremy Allaire said his company was closely monitoring reports of a potential exploit involving Binance. Circle issues USDC, another major US dollar-backed cryptocurrency.

World Liberty Financial, a cryptocurrency company linked to US President Donald Trump and his family, also said it had worked with partners to freeze funds associated with the incident.

Meanwhile, cryptocurrency exchange Coinbase said it was unaffected and was monitoring the situation.

Compromised Laptop Suspected In Security Breach

Binance’s initial assessment suggested that an engineer’s compromised laptop may have played a role in the suspected attack, allowing an unauthorised party to withdraw funds.

The full method of the alleged breach and the identity of those responsible had not been established in the information released by the exchange.

The reported funds were allegedly taken from hot wallets, which remain connected to the internet and allow cryptocurrency exchanges to process transactions quickly. Although essential for routine trading operations, hot wallets are generally more exposed to online attacks than cold wallets, which store assets offline.

Former Binance chief executive and co-founder Changpeng Zhao, widely known as CZ, said the incident appeared to be a hack.

Although Zhao no longer manages Binance, he remains a key shareholder. He said he expected users’ funds to be fully covered.

Bitcoin Falls More Than 4% After Alerts

The security alerts triggered a sharp reaction across cryptocurrency markets, with Bitcoin falling by more than 4%. Other major digital currencies, including Ethereum and Solana, also recorded steep declines.

Several industry observers had raised concerns about a possible security breach at Binance hours before the exchange publicly acknowledged the issue.

The incident could become the largest cryptocurrency heist on record if the reported scale is confirmed. It would surpass the $1.5 billion hack involving cryptocurrency exchange Bybit in 2025, which was linked to North Korea.

Binance Has More Than 300 Million Registered Users

Founded in China by Zhao in 2017, Binance allows users worldwide to trade digital assets and is estimated to have more than 300 million registered users.

The company has faced regulatory scrutiny in multiple jurisdictions. In 2024, Binance said it held more than $160 billion in assets under custody.

The latest incident has raised fresh questions about cryptocurrency exchange security and the challenges of tracing and recovering stolen digital assets.

Binance has said the investigation is continuing and that it will provide a detailed account of the incident once its security teams have completed their review.