$6.3 billion at risk in Binance security breach

Binance, the world's largest cryptocurrency exchange, identified a security breach on Thursday that put approximately $6.3 billion in funds at risk. The company stated that an attacker gained access to a service container and submitted unauthorized withdrawal transactions. The incident is currently under investigation by the exchange's internal security teams and law enforcement agencies.

The company traced the breach to a compromised laptop belonging to a DevOps engineer. This access allowed the attacker to bypass standard controls and initiate withdrawals. Binance confirmed that it found no evidence of a leaked wallet private key, suggesting the entry point was specific to the operational infrastructure rather than the core storage systems. The exchange has suspended all deposits and withdrawals to contain the potential spread of the issue.

Stablecoin providers reacted quickly to the news. Tether and Circle, which issue major digital dollar equivalents, froze assets related to the incident on Thursday. Circle co-founder and CEO Jeremy Allaire stated on X that the company froze more than $800 million in currency. Tether CEO Paolo Ardoino announced that his company froze over $1.5 billion. Together, these actions account for a substantial portion of the total estimated impact.

Binance reported that it has frozen roughly $3 billion in assets on-chain so far. The company said it is working with blockchain intelligence firms and industry partners to trace and freeze the remaining affected funds. A Binance spokesperson said user funds are completely safe and that the security teams are reviewing all relevant information with urgency. The exchange promised to provide updates through its official channels once the facts are fully verified.

Changpeng Zhao, the founder of Binance, commented on the incident despite no longer managing the company's daily operations. He posted on X that user funds are safe and acknowledged that the event does look like a hack. Zhao added that as a shareholder, he expects all user funds to be fully covered. His remarks came shortly after the company released its initial impact estimates.

The price of bitcoin fell 3.2 percent on Thursday evening, dropping below the $79,000 mark. This decline followed the public disclosure of the breach and the subsequent freezing of assets by major stablecoin issuers. The market reaction highlights the immediate sensitivity of cryptocurrency prices to news regarding the security of major exchanges.

Zhao pleaded guilty to a felony in 2023 related to money laundering failures on the platform. He was sentenced to prison for violating the Bank Secrecy Act, a law requiring financial institutions to monitor customer transactions. He was released from prison last year. President Donald Trump pardoned Zhao in 2025. The former CEO and the exchange have been key supporters of several crypto ventures associated with the Trump family.

Binance said it will share more technical details once the investigation is complete. The company emphasized that it is working around the clock to resolve the issue. It stated that its teams are collaborating with law enforcement, issuers, and blockchain intelligence firms to trace the assets. The exchange has not explicitly confirmed that funds have been permanently lost, only that they are currently impacted by the unauthorized transactions.