Binance confirms $2.54 billion frozen during security probe

Binance said Thursday, Oct. 29, that it was investigating a potential security issue after crypto firms froze $2.54 billion in assets linked to the incident, a fast-moving response while the exchange has not confirmed funds were stolen. The total is Binance’s verified figure, reported by The Associated Press.

• $2.54 billion: Binance’s verified frozen total.
• $1.567 billion in USDT and about $823 million in USDC: amounts Binance listed in a later update.
• Deposits and withdrawals: temporarily suspended, according to Binance.

Binance said its security teams were reviewing reports and would share updates when information was verified. It told customers their funds were safe. The exchange has not confirmed a hack or said how much, if any, money was taken.

What has Binance confirmed about the frozen funds?

Binance said its verified total had reached $2.54 billion and could rise as its teams and partners traced more assets. The company said it was working with law enforcement, stablecoin issuers, blockchain intelligence firms and other industry partners.

In a post on its official Binance account, the exchange listed about $823 million in USDC and $1.567 billion in USDT as frozen. Both are stablecoins, cryptocurrencies designed to track the value of a currency such as the U.S. dollar. Binance said the incident remained under investigation and it would share further verified updates.

The two stablecoin amounts add up to about $2.39 billion, below Binance’s $2.54 billion verified total. The company did not explain the difference in the update, and its figure may include other assets or freezes.

Has Binance confirmed that it was hacked?

No. Binance said it was investigating reports of a “potential security issue” and had not confirmed that user funds were affected, according to the AP report. The exchange said its teams were reviewing information urgently.

Changpeng Zhao, Binance’s co-founder and former chief executive, wrote on X that the incident “does look like a hack on Binance.” He also said he no longer manages the exchange and expected user funds to be fully covered. His assessment is not a confirmation from Binance.

Binance said it had temporarily suspended deposits and withdrawals while it carried out security checks and worked with law enforcement. It did not give a time for those services to resume.

What do the freezes mean for customers?

The freeze totals show that some assets tied to the incident have been blocked from moving. They do not establish how much was taken or whether frozen funds will be returned. Binance said it was continuing to trace and freeze assets, so its verified total could change.

Tether and Circle, the companies behind USDT and USDC, each said they froze funds connected to the incident. Circle chief executive Jeremy Allaire said its freeze was coordinated with law enforcement; Tether chief executive Paolo Ardoino described the funds as related to a potential Binance hack, the AP reported.

Binance urged users to rely on its official channels for updates. Until the exchange confirms what happened, the scale of any loss and the cause of the reported security issue remain unknown.

Sources and documents

• The Associated Press — apnews.com