Binance Investigates Potential Hack as Tether, Circle Freeze $2.3B
Major stablecoin issuers Tether and Circle have frozen over $2.3 billion in assets linked to a potential security issue at the world's largest crypto exchange.
The world’s largest cryptocurrency exchange is scrambling to address a potential security breach, with its founder Changpeng Zhao stating the incident “does look like a hack on Binance.” According to NBC News [1], Binance launched an urgent investigation into large, unexplained transfers that caught the attention of traders and security firms worldwide.
In response to the uncertainty, major stablecoin issuers have moved to contain potential fallout. Tether CEO Paolo Ardoino confirmed that the company froze more than $1.567 billion worth of its digital currency, citing a “potential Binance exchange hack,” as reported by the BBC-affiliated NBC News [1]. Circle CEO Jeremy Allaire also stated that his firm froze over $800 million in USDC associated with the incident, coordinating directly with law enforcement.
Despite the frozen assets, Binance maintains that its customers are not at risk. “Rest assured that user funds are completely safe,” a spokesperson told The Independent [2]. The company emphasized that its security teams are reviewing all relevant information with urgency, urging users to remain cautious of scams while the investigation continues.
Zhao, who stepped down as CEO in 2023 after pleading guilty to anti-money laundering violations, took to X to reassure investors. “As a shareholder, I expect all user funds will be fully covered,” he wrote, according to NBC News [1]. He added that user funds remain safe, though the extent of the damage hackers might have accomplished remains unclear, as noted by The Independent [2].
The incident occurred amid heightened global cybersecurity concerns, particularly regarding novel attacks facilitated by artificial intelligence. Bitcoin reacted swiftly to the news, dropping 3.2% to under $79,000 on Thursday evening, according to The Independent [2].
Unlike traditional banks, crypto exchange deposits are not insured by the government, leaving refunds to the discretion of the platform. In 2025, Coinbase faced a similar scare when thieves stole customer data and attempted to extort $20 million, an event Binance’s situation echoes. Binance, founded by Zhao in 2017, remains a central pillar of the digital currency market, hosting hundreds of thousands of users who store billions in digital assets.
Sources
This article is based on reporting by the outlets below.
- NBC News: Fears of Binance hack prompt Tether, Circle to freeze over $1.5 billion in funds
- The Independent: Binance reports 'potential security issue' as stablecoin issuers freeze millions in funds
