Binance Suspends Withdrawals After Suspected Multi-Billion Dollar Hack

Binance, the world’s largest cryptocurrency exchange, has temporarily suspended withdrawals across multiple blockchain networks after reports emerged of a major security breach involving its crypto wallets. The incident has raised concerns among users after blockchain watchers reported that billions of dollars in digital assets may have been stolen.

The exchange confirmed to TechCrunch that it was investigating a potential security issue after users reported suspicious activity and funds allegedly moving out of Binance wallets.

In an emailed statement, Binance said it was aware of reports about a possible security incident and that its security teams were working urgently to investigate the situation.

The company also attempted to reassure customers, stating that user funds were safe. Binance urged users to remain alert for scams and avoid clicking unofficial links or sharing sensitive account information.

Binance Temporarily Halts Withdrawals

Binance spokesperson Ross O’Leary confirmed that the exchange had temporarily suspended withdrawals across several networks following the security incident.

According to the company, the decision was taken as a precaution while its security teams reviewed the situation and investigated the reported activity.

Binance said it would share further information through its official communication channels once the details had been verified.

The withdrawal suspension came after reports that cryptocurrency was being transferred out of the exchange’s hot wallets. Hot wallets are digital asset storage systems connected to the internet, allowing exchanges to process transactions and provide users with access to their funds.

Because these wallets remain online, they can become targets for cybercriminals if security weaknesses are discovered or exploited.

Binance Founder Expects Customer Funds to Be Covered

News of the suspected attack emerged just hours after Binance founder Changpeng Zhao commented on the situation through a post on X.

Zhao, who no longer manages the company’s daily operations but remains its largest shareholder, suggested that Binance may have experienced a hack.

He also expressed confidence that customer funds would be fully covered. However, he did not explain the basis for his statement or provide additional details about the incident.

His comments added to the uncertainty surrounding the attack, as the exchange had not yet released a complete explanation of what happened or how much cryptocurrency may have been affected.

Billions in Crypto Reportedly Frozen by Industry Players

Several major cryptocurrency companies have reportedly taken action to prevent the movement of potentially stolen funds.

Financial technology company Circle froze approximately $800 million in Tether as the assets moved through its networks. Meanwhile, Tether, the company behind the USDT stablecoin, froze around $1.56 billion connected to the Binance incident.

These actions could help limit the attackers’ ability to transfer or cash out stolen cryptocurrency.

However, the total amount affected remains uncertain. Crypto watchers estimated that at least $2 billion had been drained from Binance’s hot wallets. Other estimates suggested that the potential losses could exceed $5.7 billion.

Neither figure had been officially confirmed at the time of reporting, and investigators had not ruled out the possibility that the theft was still ongoing.

Binance also had not disclosed who might be responsible for the attack or whether the company had received any communication from the suspected hackers.

Potentially One of the Biggest Crypto Hacks in History

If the reported losses are confirmed to reach billions of dollars, the incident could become one of the largest cryptocurrency security breaches ever recorded.

The crypto industry has already experienced several major exchange attacks in recent years.

In 2025, hackers stole approximately $1.4 billion in cryptocurrency from exchange Bybit in a single incident. That attack was attributed to North Korean hackers and became the largest known single crypto theft at the time.

The suspected Binance incident could significantly exceed that record if the higher estimates prove accurate.

The situation once again highlights the security challenges facing centralized cryptocurrency exchanges, which hold large amounts of digital assets and process transactions across multiple blockchain networks.

Separate Security Incident Affects Polymarket

In what appears to be an unrelated development, prediction market platform Polymarket also experienced a security issue earlier on Thursday.

The platform temporarily halted trading after confirming that a third-party service provider had been compromised. The incident also resulted in the temporary suspension of withdrawals.

According to security researchers, attackers stole approximately $2 million in user funds after compromising software developed by a company called DebugBear.

Although the Polymarket incident appears to be separate from the Binance breach, both events highlight the risks associated with third-party software and external service providers in the cryptocurrency industry.

Crypto Industry Awaits More Information

Binance’s investigation remains the central focus as users and market participants wait for verified details about the suspected breach.

The exchange has maintained that customer funds are safe and said its security teams are reviewing the incident. Meanwhile, crypto companies have taken steps to freeze assets potentially connected to the reported theft.

Until Binance provides a detailed investigation update, the exact amount stolen, the method used by the attackers and the full impact on the exchange remain unclear.

The incident could become another major test of security, transparency and customer confidence across the global cryptocurrency market.

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