Binance hack: Tether, Circle freeze $2.4 billion in crypto assets; Bitcoin tumbles below $79,000 | Here's what happened
Binance, the world's largest cryptocurrency exchange by daily trading volumes, is investigating a suspected major hack after freezing more than $2.5 billion in digital assets, triggering a sell-off across cryptocurrency markets.
The exchange said it had frozen $2.54 billion in assets and could raise that figure further as its teams work with law enforcement, stablecoin issuers, blockchain intelligence firms and industry partners.
Binance said it had not confirmed any impact on customer funds. “At this stage, we have not confirmed any impact to user funds,” a company spokesperson said, adding that its security teams were investigating reports of a potential security issue.
The exchange also suspended withdrawals on multiple networks, describing the move as a precautionary measure. It said it was working to restore services when it was safe to do so.
However, several industry experts said the incident appeared to involve a significant amount of stolen assets.
“It does look like a hack on Binance,” said former Binance chief Changpeng Zhao, who no longer runs the company but remains its largest shareholder. Zhao said he expected all user funds to be fully covered.
The two largest stablecoin issuers, Tether and Circle, also moved to freeze digital assets linked to the suspected incident.
Tether chief executive Paolo Ardoino said his company had frozen more than $1.5 billion in USDT “related to a potential Binance exchange hack”.
Circle chief Jeremy Allaire said $800 million of its USDC had been frozen amid reports of a potential exploit involving Binance.
USDT and USDC are stablecoins whose value is pegged to the US dollar.
Meanwhile, blockchain tracker Arkham identified wallets associated with the suspected hacker holding about $5.9 billion in digital assets. However, this figure does not necessarily represent the amount stolen from Binance.
Bitcoin slumped as much as 3.7%, falling below $79,000 to its lowest level since September, as news of the suspected hack weighed on investor sentiment. Other digital tokens also sold off.
“The rumoured Binance hack is definitely driving down coin prices,” Fredrick Collins, chief executive and co-founder of crypto data platform Velo Data, told Bloomberg.
“Binance is such a behemoth in crypto that any hit to confidence in them is a hit to confidence in the industry as a whole,” he added.
The sell-off comes after a two-month-long price rebound in the cryptocurrency market. Traders were already preparing for volatility, with $11 billion in crypto options scheduled to expire on Friday.
If confirmed, the incident could surpass the February 2025 attack on crypto exchange Bybit, in which hackers stole almost $1.5 billion in tokens. The incident was attributed to hackers affiliated with North Korea.
Binance has an emergency reserve fund, the Secure Asset Fund for Users (SAFU), established in 2018 to protect customers in extreme situations. The fund is generally maintained at around $1 billion.
“Hot wallets getting drained is not something new to crypto, but the amount would be a meaningful hack on the largest crypto exchange,” said James Seyffart of Bloomberg Intelligence.
“It's definitely a bad look. And this is one after another,” he added, referring to a recent spate of security incidents.
The Binance incident also came on the same day that Polymarket halted trading on its international exchange for an hour after a third-party software provider was compromised. Blockchain analytics platform Bubblemaps said that more than 700 users had lost $2.7 million.
(With inputs from agencies)
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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