Fears of Binance hack prompt Tether, Circle to freeze over $1.5 billion in funds

Cryptocurrency exchange Binance said Thursday it was investigating a “potential security issue” but insisted that all customer money was safe after a series of very large transfers on the platform caught the attention of traders and the site’s founder speculated that it may have been due to a hack.

“Our teams are aware of reports of a potential security issue and are actively investigating. Rest assured that user funds are completely safe,” a spokesperson for Binance said in a statement.

“Our security teams are reviewing all relevant information with urgency,” the spokesperson said, urging users to “remain cautious of scams.”

Binance is the world’s largest cryptocurrency trading platform by volume, with hundreds of thousands of users who buy, sell and store billions of dollars’ worth of digital currencies on the exchange.

Unlike traditional bank deposits, money kept in accounts with companies like Binance is not insured by the government against losses, potentially leaving any refunds up to the discretion of individual exchanges.

In the wake of Thursday’s reports, two major digital stablecoin issuers said they had taken steps to limit potential fallout if the Binance transfers turn out to be the result of a hacking attempt.

Tether froze more than $1.567 billion worth of its digital currency “related to a potential Binance exchange hack,” CEO Paolo Ardoino said in a post on X.

Jeremy Allaire, CEO of stablecoin issuer Circle, said the company had also frozen assets and was coordinating with law enforcement on the matter.

“Circle is closely tracking reports of a potential exploit involving Binance. In coordination with law enforcement, we have frozen more than 800M USDC associated with the incident and will continue supporting the investigation,” he wrote, using the shorthand for the company’s United States Dollar Coin, whose value is pegged to the dollar.

The sudden outflow from Binance, which was reported earlier by Bloomberg, occurred at a moment when cybersecurity defenses around the world are on high alert about the possibility of novel attacks facilitated by recent advances in artificial intelligence.

Digital currency has been a primary target of hackers for years. In 2025, Coinbase disclosed that thieves had stolen customers’ personal information and attempted to extort the company for $20 million. Coinbase refused to pay and offered a bounty for information leading to arrests instead.

Binance’s founder, Changpeng Zhao, said, “It does look like a hack on Binance.”

“As a shareholder, I expect all user funds will be fully covered,” he wrote on X, saying user funds “are safe.”

Zhao stepped down as the CEO of Binance in 2023 and pleaded guilty to breaking U.S. anti-money laundering laws. President Donald Trump later granted him a full pardon.