Binance, the world’s largest cryptocurrency exchange, halted withdrawals on several networks Thursday as company officials and blockchain partners scrambled to contain what could become the largest digital asset heist on record.
By Thursday evening, cryptocurrency issuers and industry allies had frozen more than $2.54 billion in digital assets, according to an update posted on social media by Binance. The platform said its security teams were actively investigating an issue, while founders and industry partners raced to track massive outflows draining from the platform’s internet-connected hot wallets.
Issuers halt billions in stablecoins
The swift containment efforts were led by two of the world’s largest stablecoin operators, which can freeze addresses pegged to the U.S. dollar upon detecting illicit activity. Tether Chief Executive Paolo Ardoino posted on X that his firm froze nearly $1.57 billion connected to a potential exchange hack. Jeremy Allaire, chief executive and co-founder of Circle, stated that his firm had frozen more than $800 million worth of USD Coin in coordination with law enforcement.
In addition, Binance co-founder Yi He announced on X that crypto firm Ripple had frozen roughly $200 million in linked assets. Binance stated that the total sum of frozen funds could grow further as internal investigators collaborate with blockchain intelligence specialists and international authorities.
Binance spokesperson Ross O’Leary told TechCrunch that the platform “temporarily suspended withdrawals on multiple networks following a security incident as a precautionary measure.” The exchange insisted in public statements that customer balances remain secure.
“Rest assured that user funds are completely safe,” Binance said in a statement, urging traders to stay alert for scams and phishing attempts.
Founder points to potential hack
Despite the platform’s assurances, Binance co-founder Changpeng Zhao wrote on X on Thursday that the abnormal transactions “looked like a hack.” Zhao, who stepped down as chief executive in 2023 following a guilty plea related to federal anti-money laundering violations and later received a pardon from President Donald Trump in 2025, remains the platform’s primary shareholder.
“As a shareholder, I expect all user funds will be fully covered,” Zhao wrote, adding that he no longer directs day-to-day operations at the platform.
The scale of the missing funds remained in flux Thursday evening. Crypto market monitors estimated that at least $2 billion had slipped through Binance hot wallets, with some industry estimates projecting losses that could reach as high as $5.7 billion if unconfirmed outflows are verified. If losses reach those levels, the breach would easily surpass the prior record of $1.4 billion stolen from crypto exchange Bybit in 2025.
Market reactions and next steps
The sudden security scare rippled across financial markets Thursday afternoon, dragging the price of bitcoin down 3.2 percent to below $79,000. Unlike traditional banking systems, assets stored on cryptocurrency exchanges do not carry federal deposit insurance, leaving customer reimbursements to the discretion of the platforms.
Binance.US, an independent American trading platform, released a statement clarifying that its operations were not affected by the breach.
Investigators have not yet identified who is responsible for the breach or confirmed whether the intruders issued any extortion demands. Binance said it will provide formal updates as verified findings become available.
