Binance Freezes $2.54 Billion After Founder Confirms Likely Hack

Binance, the world's largest cryptocurrency exchange, confirmed on Thursday that a suspected security breach has led to the freezing of $2.54 billion in digital assets. The company disclosed the verified total of frozen funds approximately two hours after its initial alert to the public. The figure is expected to rise as the exchange continues to trace assets with the help of law enforcement and industry partners.

Changpeng Zhao, the platform's founder, acknowledged the severity of the situation in a post on X. While he no longer manages the company, he stated that the event "does look like a hack on Binance." Zhao added that he expects all user funds to be fully covered, a position he holds as a shareholder. A company spokesperson reinforced this message, asserting that user funds are completely safe while internal teams work around the clock to resolve the issue.

The financial freeze involved major stablecoin providers acting in coordination with the exchange and law enforcement. Circle, led by CEO Jeremy Allaire, reported freezing the equivalent of more than $800 million in currency associated with the incident. Paolo Ardoino, CEO of Tether, stated that his company froze the equivalent of more than $1.5 billion in currency related to the potential hack. These actions account for the bulk of the $2.54 billion total reported by Binance.

Market reactions were immediate, with the price of bitcoin dropping 3.2% by Thursday evening to fall below $79,000. To contain the damage and conduct thorough security checks, Binance temporarily suspended all deposits and withdrawals. The company indicated it will provide further updates only once it has verified additional information through its official channels.

Zhao’s return to the spotlight comes with a complex legal history. He pleaded guilty to a felony in 2023 for failing to prevent money laundering on the platform and was sentenced to prison for violating the Bank Secrecy Act. Prosecutors noted that no one had previously violated those regulations to the extent Zhao did. He was released last year and received a presidential pardon from Donald Trump in 2025. The founder and the exchange have been key supporters of certain Trump family crypto ventures.

Binance was founded in 2017 and has remained the dominant player in the global crypto market. The current investigation marks a significant operational pause for the exchange, which is currently working closely with blockchain intelligence firms to identify and freeze additional assets that may have moved from the compromised accounts.