Binance halts trading after reporting $6.3 billion security breach

Binance suspended all deposits and withdrawals on Thursday after reporting a security incident that it estimates affected approximately $6.3 billion in assets. The world's largest cryptocurrency exchange paused these operations to conduct security checks and freeze funds while it works with law enforcement. This disruption stops the flow of money in and out of the platform for users worldwide.

The company stated that its initial investigation points to a compromised DevOps engineer's laptop. This breach allowed an attacker to access a service container and submit unauthorized withdrawal transactions. Binance clarified that it found no evidence of a wallet private key leak. The exchange has worked with blockchain partners to freeze affected assets, with roughly $3 billion frozen on-chain so far.

Changpeng Zhao, the founder of Binance, confirmed the nature of the event on social media. He stated that the incident "does look like a hack on Binance." Zhao, who stepped down as CEO in 2023, added that he expects all user funds to be fully covered as a shareholder. He reassured followers with the message, "User funds are safe!"

Stablecoin providers have reacted quickly to the incident. Tether CEO Paolo Ardoino announced on X that the company froze the equivalent of more than $1.5 billion in currency related to the potential hack. Circle, another major stablecoin issuer, also froze funds in coordination with law enforcement. Jeremy Allaire, co-founder and CEO of Circle, said the company froze the equivalent of more than $800 million in currency associated with the incident.

The market responded to the news with a dip in prices. Bitcoin fell 3.2% on Thursday evening to trade under $79,000. The drop reflects investor caution as details of the breach emerge. Traders and holders are monitoring the situation closely for further developments.

A Binance spokesperson issued a statement saying the company's teams are working around the clock to resolve the issue. The statement emphasized that security teams are reviewing all relevant information with urgency. The company promised to provide updates through official channels once the information is verified. It noted that it will share more technical details once the investigation is complete.

Zhao has a complex history with U.S. regulators. He pleaded guilty to a felony in 2023 related to his failure to prevent money laundering on the platform. He was the first person sentenced to prison time for violations of the Bank Secrecy Act, which requires financial institutions to know their customers and report suspicious activity. President Donald Trump pardoned Zhao in 2025. He was released from prison last year following his sentencing.

The incident involves the largest exchange in the crypto industry. Binance was founded in 2017. The company has been a key supporter of some Trump family crypto enterprises. The current investigation aims to trace and freeze additional assets. Binance is working closely with issuers, blockchain intelligence firms, and industry partners in this effort.