Binance flags 'potential security issue,' says approximately $6.3 billion impacted
LOS ANGELES —
asserted
Binance → flag → billion
Binance, the world's largest cryptocurrency exchange, said Thursday it's investigating reports of a potential security issue as its founder said the incident "does look like a hack on Binance."
asserted
incident → say → Binance
The company said late Thursday the estimated total impact was at more than $6 billion, which could be one of the most significant of such security incidents on record.
uncertain
which → say → record
It wasn't immediately clear the extent of the damage hackers might have been able to cause, and Binance had not explicitly confirmed that funds had been pilfered.
uncertain
funds → cause → damage
The company said its teams are "working around the clock" to resolve the issue.
asserted
teams → say → issue
"Rest assured that user funds are completely safe," a Binance spokesperson said in a statement.
"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 statement continued.
asserted
statement → rest → information
The company wrote on its X account that the estimated total impact sat at around $6.3 billion.
asserted
impact → write → billion
It said it has worked with blockchain partners to freeze affected assets, with roughly $3 billion frozen on-chain so far.
asserted
billion → say → chain
"Binance's initial investigation suggests that the security incident may involve a compromised DevOps engineer's laptop, which allowed an attacker to gain access to a service container and submit unauthorized withdrawal transactions," the company wrote.
uncertain
company → suggest → transactions
"We have found no evidence of any wallet private key leak," it added.
asserted
it → find → leak
Binance said it will share more technical details once the investigation is complete and when the facts are "fully verified."
asserted
facts → say → details
"Our teams work closely with law enforcement, issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets," the company wrote in a separate post earlier Thursday.
asserted
company → work → post
Binance also said all deposits and withdrawals are temporarily suspended while it conducts security checks, freezes funds and works with law enforcement.
asserted
it → say → enforcement
Stablecoin providers Tether and Circle each said they froze funds Thursday in response to the incident.
asserted
they → say → incident
Jeremy Allaire, co-founder and CEO of Circle, wrote on X that the company had frozen the equivalent of more than $800 million in currency associated with the incident "in coordination with law enforcement."
asserted
company → write → enforcement
Tether CEO Paolo Ardoino said on X that the company froze the equivalent of more than $1.5 billion in currency related to "a potential Binance exchange hack."
asserted
company → say → hack
The price of bitcoin dropped 3.2% Thursday evening to under $79,000.
asserted
price → drop → 79,000
Binance was founded in 2017 by Changpeng Zhao, who in 2023 pleaded guilty to a felony related to his failure to prevent money laundering on the platform and stepped down as CEO.
asserted
Binance → found → CEO
President Donald Trump pardoned him in 2025.
asserted
Trump → pardon → 2025
Zhao posted on X on Thursday that "User funds are safe!" but added that the incident "does look like a hack on Binance."
asserted
incident → post → Binance
He added that while he doesn't manage Binance anymore, "as a shareholder, I expect all user funds will be fully covered."
asserted
funds → add → shareholder
Zhao was released from prison last year after being sentenced for violating the Bank Secrecy Act.
asserted
Zhao → release → Act
He was the first person ever sentenced to prison time for violations of that law, which requires U.S. financial institutions to know who their customers are, to monitor transactions and to file reports of suspicious activity.
asserted
customers → sentence → activity
Prosecutors said no one had ever violated the regulations to the extent Zhao did.
asserted
Zhao → say → extent