Binance founder says exchange likely hacked as billions frozen

The world’s largest cryptocurrency exchange faced a security crisis on Thursday as its founder admitted the signs pointed to a breach. Binance stated it was investigating reports of a potential security issue while freezing substantial amounts of capital. The situation forced the company to suspend all deposits and withdrawals while teams conducted checks.

Changpeng Zhao, who founded the platform in 2017, posted on X that the incident does look like a hack on Binance. Zhao, who no longer manages the company, added that he expects all user funds to be fully covered as a shareholder. A company spokesperson confirmed that user funds are completely safe and that security teams are reviewing relevant information with urgency.

The financial impact became clear as industry partners moved to stop the flow of assets. By Thursday evening, cryptocurrency firms had frozen more than $2.5 billion in funds. Binance updated its X account two hours after its initial disclosure to specify the verified total at $2.54 billion. The company noted that this figure may continue to increase as it works with law enforcement and blockchain intelligence firms to trace additional assets.

Major stablecoin providers joined the effort to contain the incident. Jeremy Allaire, co-founder and CEO of Circle, wrote that his company froze the equivalent of more than $800 million in currency in coordination with law enforcement. Paolo Ardoino, CEO of Tether, stated on X that his firm froze the equivalent of more than $1.5 billion in currency related to the potential exchange hack.

Market reactions followed quickly as the news spread. The price of bitcoin dropped 3.2% on Thursday evening, falling to under $79,000. Binance said it was working around the clock to resolve the issue and would provide updates through official channels once information was verified. The company had not explicitly confirmed that funds had been pilfered, noting it was not immediately clear the extent of the damage hackers might have accomplished.

Zhao’s involvement in the crypto market has a complex history. He pleaded guilty to a felony in 2023 related to his failure to prevent money laundering on the platform and stepped down as CEO. He was the first person sentenced to prison time for violations of the Bank Secrecy Act, which requires financial institutions to monitor transactions and report suspicious activity. President Donald Trump pardoned Zhao in 2025, and he was released from prison last year.

Zhao and Binance have remained key supporters of some Trump family crypto enterprises. The exchange continues to operate under the assumption that its security protocols will hold, even as the frozen asset total remains a focal point for investors and regulators alike.