Binance freezes withdrawals as up to $5.8B may be at risk

Binance suspended withdrawals and is investigating a possible breach; loss estimates are unconfirmed.

According to BleepingComputer and TechCrunch, Binance confirmed it is investigating reports of a potential security issue. Spokesperson Ross O'Leary said Binance has "temporarily suspended withdrawals on multiple networks following a security incident as a precautionary measure." Binance's statement says: "Rest assured that user funds are completely safe."

The dollar figures are not confirmed losses. Arkham Intelligence is tracking 55 addresses labeled "binance-hacker-1029" holding approximately $5.78 billion, which BleepingComputer notes is the value held across those wallets, not a confirmed amount stolen. TechCrunch reports that by some estimates Binance may have lost upwards of $5.7 billion, that the numbers have not been confirmed, and that the theft may be ongoing.

Binance has not confirmed whether the transfers were unauthorized, how the suspected breach occurred, or the total value of any stolen assets. Per BleepingComputer, Tether's CEO said it froze more than $1.567 billion in USDT, and Circle's CEO said it froze more than $800 million in USDC. It is unclear who is behind the suspected hack.

What to watch: updates from official Binance channels once information is verified. Binance warns users to be cautious of scams and not to trust unofficial links, messages, or requests for account information.

The facts we checked

According to BleepingComputer and TechCrunch, citing Binance statements

1. Binance confirmed it is investigating reports of a potential security issue.Fact · BleepingComputer and TechCrunch
2. Binance spokesperson Ross O'Leary said Binance has "temporarily suspended withdrawals on multiple networks following a security incident as a precautionary measure."Quote · TechCrunch
3. Binance statement: "Rest assured that user funds are completely safe."Quote · BleepingComputer and TechCrunch
4. Binance has not yet confirmed whether the transfers were unauthorized, how the suspected breach occurred, or the total value of any stolen assets.Reported · BleepingComputer
5. Arkham Intelligence is tracking 55 addresses labeled "binance-hacker-1029" holding approximately $5.78 billion. BleepingComputer notes this is the value held across all tracked wallets, not a confirmed amount stolen from Binance.Figure · BleepingComputer
6. By some estimates Binance may have lost upwards of $5.7 billion. TechCrunch says the numbers have not been confirmed and the theft may be ongoing.Reported · TechCrunch
7. Blockchain analysis shared on X by crypto journalist StarPlatinum showed the Binance hot wallet "Binance 14" transferring approximately $2.53 billion across 64 tokens to a newly created Ethereum address.Reported · BleepingComputer
8. Tether CEO Paolo Ardoino said on X that Tether had frozen more than $1.567 billion in USDT associated with the potential hack.Reported · BleepingComputer
9. Circle CEO Jeremy Allaire confirmed Circle had frozen more than $800 million in USDC linked to the incident and is coordinating with law enforcement.Reported · BleepingComputer
10. Founder Changpeng Zhao, who no longer runs Binance, said on X that the incident appeared to be a hack and that he expects user funds to be fully covered. TechCrunch says he gave no explanation for that expectation.Reported · BleepingComputer and TechCrunch
11. It is unclear who is behind the suspected hack, and Binance did not say whether it had received any correspondence from the hackers.Reported · TechCrunch
12. Binance says it will post updates through official Binance channels once it has verified information, and warns users to be cautious of scams and not to trust unofficial links, messages, or requests for account information.Fact · BleepingComputer and TechCrunch

Sources

• BleepingComputerBinance probes potential $5.8 billion crypto-theft hack
• TechCrunchBinance pauses withdrawals as hackers suspected of stealing billions in crypto