Crypto worth billions frozen after suspected Binance hack

Binance suspended withdrawals after a suspected crypto hack, with $2.54 billion in assets frozen and stablecoin issuers Tether and Circle blocking $2.36 billion in related funds. The incident, which could become the largest in crypto history, sent digital tokens tumbling and raised concerns about exchange security.

Binance, the world’s largest cryptocurrency exchange, suspended all deposits and withdrawals on October 29, 2026, following a suspected security breach that may have drained billions in digital assets. The exchange confirmed that $2.54 billion in funds were frozen, with blockchain tracker Arkham identifying wallets linked to the suspected hacker holding approximately $5.78 billion in crypto. It does look like a hack on Binance, said former CEO Changpeng Zhao, who remains a majority shareholder of the firm, though he no longer manages the exchange.

Arkham Identifies Billions in Suspected Hacker Wallets

Blockchain analytics firm Arkham identified wallets associated with the suspected hacker holding approximately $5.78 billion in digital assets, though the exact amount stolen from Binance remains unclear. Binance’s own investigation revealed that $2.54 billion in assets were frozen, with the figure expected to rise as law enforcement and other partners trace additional funds. The exchange also warned that the total could increase as its teams work to recover stolen assets.

Tether and Circle, the issuers of USDT and USDC stablecoins, took swift action to mitigate the breach. Paolo Ardoino, Tether’s CEO, said the company froze over $1.567 billion in USDT linked to the incident, while Circle’s Jeremy Allaire confirmed freezing $800 million in USDC. In coordination with law enforcement, we have frozen more than 800M USDC associated with the incident and will continue supporting the investigation, Allaire said on X.

Binance Considers Using SAFU Fund for Losses

An emergency insurance and reserve fund from Binance called the Secure Asset Fund for Users (SAFU) exists to protect customers. Binance has not confirmed whether the SAFU will be used to cover losses, but the exchange has reiterated that user funds are secure.

Breach Could Surpass Bybit Heist as Biggest Hack

If the highest estimates of stolen funds are accurate, this breach could be the biggest crypto hack ever, surpassing the $1.5 billion Bybit heist in February 2025. Previous high-profile attacks include the 2022 collapse of FTX and the 2011 bankruptcy of Mt. Gox, which lost billions in Bitcoin. Binance itself faced a $40 million hack in 2019, but the current incident dwarfs those in scale. The fact that exploits keep happening makes it dangerous in the age of newest AI models being released every two weeks, said Tian Zeng, CEO of crypto hedge fund Third Eye.

Analysts noted that the breach has reignited concerns about the security of centralized exchanges. Hot wallets getting drained is not something new to crypto, but the amount would be a meaningful hack on the largest crypto exchange, said James Seyffart at Bloomberg Intelligence.

Bitcoin and BNB Prices Fall After Hack News

Crypto markets reacted sharply to the news, with Bitcoin falling below $79,000. Binance’s native token, BNB, fell nearly 7% as traders panicked. The broader crypto market experienced increased volatility following recent developments. The rumored Binance hack is definitely driving down coin prices, said Fredrick Collins of Velo Data.

Some executives noted that Tether and Circle’s actions may have contributed to stabilizing the situation.