Binance Freezes $2.54bn in Funds as it Probes Possible Security Breach

Binance, the world’s largest cryptocurrency exchange, said Thursday that at least $2.54 billion in funds have been frozen while it investigates a possible security breach.

In a statement, the company said its security teams were examining the incident urgently and would post verified updates on its official channels. It stressed that customer funds are safe. It also warned users to be wary of scams and to ignore unofficial links, messages or requests for account details, a common tactic of fraudsters during periods of market uncertainty.

Binance did not say how the problem was detected or what caused it, and has not confirmed that a hack took place.

Changpeng Zhao, the exchange’s founder and largest shareholder, was more direct. Writing on X, he said “It does look like a hack on Binance.” Zhao stepped down as chief executive in 2023 and no longer runs the platform’s day-to-day operations. He said that, as a shareholder, he expects users to be fully compensated for any losses.

The episode is a test for the exchange, which serves a vast global customer base. Any breach of this scale would renew scrutiny of how well crypto platforms safeguard customer assets, an issue that has dogged the industry through repeated high-profile thefts.

It remains unclear how the frozen funds relate to any suspected intrusion, how many customers are affected, and when normal access will be restored. This is a developing story and will be updated as Binance releases verified information.