Binance Investigates Security Breach as Stablecoin Issuers Freeze Over $2.3 Billion

Binance, the world's largest cryptocurrency exchange, announced on Thursday it is investigating a potential security issue after its founder described the event as a likely hack. The exchange stated it is reviewing all relevant data with urgency to determine the extent of the breach.

Stablecoin providers moved quickly to secure assets in response to the incident. Tether CEO Paolo Ardoino said on X that the company froze the equivalent of more than $1.5 billion in currency related to a potential Binance exchange hack. Circle co-founder and CEO Jeremy Allaire confirmed on X that his company froze the equivalent of more than $800 million in currency in coordination with law enforcement.

Bitcoin prices reacted to the news, dropping 3.2% Thursday evening to fall below the $79,000 mark. Binance did not explicitly confirm that funds had been stolen, noting that the damage extent was not immediately clear.

A Binance spokesperson issued a statement assuring customers that user funds are completely safe. The company said it will provide updates through official channels once it has verified information about the incident.

Changpeng Zhao, who founded Binance in 2017, posted on X that user funds are safe. Although he no longer manages the company, he said the incident does look like a hack on Binance. As a shareholder, Zhao stated he expects all user funds to be fully covered.

Zhao pleaded guilty in 2023 to a felony related to his failure to prevent money laundering on the platform. He stepped down as CEO at that time and was later pardoned by President Donald Trump in 2025. Zhao was released from prison last year after serving time for violating the Bank Secrecy Act. He became the first person sentenced to prison for such violations, which require U.S. financial institutions to monitor transactions and file reports of suspicious activity.

Prosecutors stated that no one had ever violated those regulations to the extent Zhao did. Zhao and Binance have served as key supporters of several crypto enterprises associated with the Trump family.