Crypto platform Binance confirms major hack with more than $2.5bn frozen

Binance Suspends Transfers After Suspected Cyberattack

Usagevpn.com – Binance temporarily halted deposits and withdrawals after confirming a major security incident that may rank among the largest cryptocurrency thefts ever recorded. The exchange, which leads the global market in daily trading volume, said it was carrying out security reviews, freezing assets and working with law enforcement as the scale of the attack became clearer.

Blockchain analytics company Chainalysis put its preliminary estimate of the stolen amount at roughly $5.912 billion at the time of the theft. If confirmed, that figure would far exceed the previous record for a crypto-sector cyberattack: the $1.5 billion taken from Bybit in February 2025, an incident linked to hackers affiliated with North Korea.

“This figure may continue to increase as our teams work closely with law enforcement, issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets,” Binance said.

Emergency Measures and Conflicting Signals

At about 0030 GMT on Friday, Binance announced that transfers into and out of the platform had been suspended while its teams examined the breach. The company sought to reassure customers that “user funds are completely safe,” while also stating that it would “cover all losses.”

Those messages left key questions unresolved, including the extent of any exposure to customer accounts and the method used by the attackers. Binance and outside industry observers did not immediately provide an explanation of how the platform may have been compromised.

The interruption affects one of the most important gateways in the digital-asset market. Deposits allow users to move crypto into an exchange, while withdrawals let them transfer holdings to personal wallets or other services. Freezing those functions is a common containment step during a security investigation, but it can also create uncertainty for traders trying to access funds during a sharp market move.

Billions of Dollars Frozen

Stablecoin issuers moved quickly to block assets believed to be connected to the suspected theft. Paolo Ardoino, chief executive of Tether, said the company had frozen around $1.6 billion tied to a possible Binance-related hack. Circle chief executive Jeremy Allaire said more than $800 million in USDC had also been frozen.

USDT, issued by Tether, and Circle’s USDC are stablecoins designed to maintain a value close to the US dollar. Their centralised issuers can freeze tokens at specific blockchain addresses, giving investigators and platform operators a potential way to prevent stolen assets from being transferred or converted.

That ability distinguishes stablecoins from many other digital assets. Once transactions involving decentralised cryptocurrencies are confirmed on a blockchain, recovering funds can be difficult. A freeze does not necessarily mean assets have been returned, but it can restrict an attacker’s ability to move them while tracing efforts continue.

Market Reaction

News of the incident triggered broad losses across major cryptocurrencies. At about 0025 GMT, bitcoin was down nearly 5%, Ethereum had lost almost 6%, and BNB, the token native to the Binance ecosystem, had fallen close to 10%.

Stablecoins remained comparatively steady because their values are intended to stay within narrow ranges around the dollar. Even so, a large-scale security event involving a major exchange can unsettle the wider market, particularly when traders are unsure whether transfer restrictions, liquidations or further disclosures could affect prices.

For several hours before Binance publicly confirmed the breach, figures in the crypto industry had said attackers appeared to have gained access to the exchange. Changpeng Zhao, Binance’s former chief executive and a majority shareholder, said the event appeared to be a hack. He suggested total losses could be “a bit higher” than $1 billion, a far smaller estimate than the preliminary figure cited by Chainalysis.

The differing estimates underline how difficult it can be to assess a crypto theft in its earliest stages. Investigators must identify relevant wallet addresses, distinguish stolen funds from legitimate transfers and follow assets across blockchains, exchanges and token swaps. The total can also change if additional affected wallets are identified or if stolen tokens are moved.

A New Test for Crypto Security

The suspected attack arrives during growing concern over the security challenges facing the cryptocurrency industry. Large exchanges handle vast quantities of assets and remain attractive targets for criminal groups. Their systems combine online account access, wallet infrastructure, internal controls and links to multiple blockchains, creating a complex security environment.

The incident also comes as concerns rise over the rapidly expanding capabilities of artificial intelligence models. Some observers fear advances in AI could increase risks to cryptography and IT security protocols, although no explanation has yet been offered connecting AI to the Binance incident.

Binance said its focus remained on security checks, asset freezes and cooperation with authorities and industry partners. The US Department of Justice and the FBI did not immediately respond to requests for comment.

For users, the immediate issue is whether Binance can restore normal transfer services safely and provide clearer details about the breach. The event is likely to renew scrutiny of how exchanges protect customer assets, communicate during emergencies and coordinate with stablecoin issuers and blockchain investigators when funds are stolen.