Crypto exchange Binance freezes $3 billion after security breach

File photo of Binance CEO Changpeng Zhao (CZ) . (Image source: Binance)

Binance has temporarily halted deposits and withdrawals while investigating a possible security breach, with cryptocurrency companies freezing $3 billion in funds linked to the incident by Thursday evening. The world’s largest cryptocurrency exchange has not explicitly confirmed that funds were stolen, reported news agency AP. The extent of any losses remained unclear, although founder Changpeng Zhao said the incident appeared to be a hack.

Urging users to be “cautious of scams”, Binance said: “Our teams are aware of reports of a potential security issue and are actively investigating. User funds are completely safe. Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information.”

The exchange further said: “Binance will cover all losses. As a precaution, all deposits and withdrawals are temporarily suspended while our team conducts security checks, freezes funds, and works with law enforcement. We are working around the clock and will share a full post-mortem once the investigation is complete.”

Tether and Circle freeze funds

In its latest update, Binance announced on X that the verified value of frozen assets had reached $3 billion. The exchange, however, assured that user funds are safe. Deposits and withdrawals will remain suspended while Binance carries out security checks, freezes funds and coordinates with investigators.

Stablecoin issuers Tether and Circle separately confirmed that they had frozen funds on Thursday in connection with the incident, AP reported.

Circle co-founder and chief executive Jeremy Allaire said on X that his company had frozen more than $800 million in coordination with law enforcement. Tether chief executive Paolo Ardoino said the company had frozen more than $1.5 billion linked to a possible hack of the exchange.

Bitcoin fell 3.2% on Thursday evening, trading below $79,000.

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