Binance, the world's largest cryptocurrency exchange, is investigating a potential security issue following a cyberattack on Thursday. The investigation was triggered after traders noticed a series of very large transfers on the platform. Co-founder Changpeng Zhao stated that the incident appears to be a hack.
In response, the platform suspended some trading and transactions to conduct security checks. Stablecoin issuers and other cryptocurrency firms quickly froze more than $2.5 billion in funds by Thursday evening. This news spurred emergency asset freezes and sent the price of digital assets tumbling.
The full extent of the possible hack is not yet clear, although some estimates suggest hackers stole billions in crypto. Binance has posted contradictory messages on X, insisting that user funds are completely safe while also stating it would cover all losses.
The company is now working with law enforcement agencies, token issuers, blockchain intelligence firms, and other industry partners to trace and freeze additional assets. The amount of frozen funds could increase as these efforts continue.