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Binance probes security issue as firms freeze $2.54 billion

Binance is investigating a potential security issue after crypto firms froze $2.54 billion; deposits and withdrawals are paused as the exchange checks user funds.

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Binance probes security issue as firms freeze $2.54 billion

Binance said it is investigating a potential security issue after crypto firms froze $2.54 billion in assets, while the exchange paused deposits and withdrawals as a precaution. The Associated Press report said Binance had not confirmed that customer funds were stolen.

Binance described the $2.54 billion as the verified total of frozen funds in a post on X on Thursday, Oct. 29. It said the figure could rise as it works with law enforcement, issuers, blockchain intelligence firms and other industry partners to trace and freeze more assets.

What has Binance confirmed so far?

Binance says it is reviewing reports of a potential security issue and has not confirmed an impact to user funds. A spokesperson said user funds were safe, and the exchange said its security teams were checking the available information.

Binance co-founder Changpeng Zhao, who no longer manages the exchange, said on X that the incident “does look like a hack.” That is his assessment; Binance has not confirmed a hack or said how the issue occurred.

Which firms froze funds, and how much?

Tether and Circle froze more than $2.38 billion combined, according to Reuters’ report. Tether said it froze nearly $1.57 billion, while Circle said it froze more than $800 million in coordination with law enforcement.

Reuters also reported that Binance co-founder Yi He said Ripple had frozen roughly $200 million. These firm-level figures were reported separately from Binance’s $2.54 billion verified total, which may include other partners and could change as tracing continues.

What should Binance users watch next?

Deposits and withdrawals remain temporarily suspended while Binance conducts security checks, freezes funds and works with law enforcement, the AP reported. If you use Binance, the exchange says it will share updates through its official channels once it has verified information.

The next signal is Binance’s update on the investigation and whether it restores deposits and withdrawals. The company has not given a date for that update or a timeline for resuming transfers.

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