Binance investigates after billions in crypto reportedly drained

Summarised from 10 outlets · Updated 30 Oct, 01:15 · Archive

Binance said it is investigating a potential security issue after billions of dollars in cryptocurrency were reportedly drained from the exchange.

Binance, the world's largest cryptocurrency exchange by trading volume, said on Thursday that it was investigating reports of a potential security issue after users reported funds being drained from accounts. Binance founder Changpeng Zhao, who stepped down as CEO in 2023 but remains the largest shareholder, said in a post on social media that the incident 'does look like a hack on Binance'. He added that as a shareholder he expected all user funds to be fully covered.

Reports suggested that roughly $2.7 billion to $2.8 billion in cryptocurrency was suddenly withdrawn from Binance accounts, with more than $2 billion in Ethereum and other tokens sent to an address created hours earlier. Crypto data provider Arkham Intelligence linked nearly $6 billion in digital assets across 55 wallet addresses to the potential exploit, though the verified total frozen so far was lower.

In response to the suspected breach, major stablecoin issuers moved quickly to freeze funds. Tether, which issues the world's largest stablecoin, froze approximately $1.56 billion to $1.57 billion in USDT currency. Circle, another stablecoin issuer, froze over $800 million in USD Coin (USDC). Crypto platform Ripple froze roughly $200 million of funds linked to the attack. Together, these freezes totalled at least $2.54 billion by Thursday evening.

Binance suspended all deposits and withdrawals on multiple networks as a precautionary measure whilst its security teams investigated. The company said in a statement: 'Rest assured that user funds are completely safe. Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information.' Binance also warned users to remain cautious of scams and not to trust unofficial links or requests for account information.

Binance said the verified total of frozen funds was $2.54 billion and that this figure may continue to increase as its teams work with law enforcement, blockchain intelligence firms and industry partners to trace and freeze additional assets. The company said it would share a full post-mortem once the investigation was complete. Binance.US, a separate cryptocurrency exchange, said it was not affected by the security incident.

The news of the suspected hack caused Bitcoin's price to fall, dropping to below $77,000 to $79,000 depending on the time of trading on Thursday. Circle's chief executive Jeremy Allaire said the company was 'closely tracking reports of a potential exploit involving Binance' and that it was supporting the investigation. Binance has over 335 million registered global users.

How it is being reported

• Binance crypto platform suspends trades amid suspected hackThe platform suspended some trading while crypto companies froze billions in their respective currencies. The full extent of the possible hack was not yet clear.DW News · 30 Oct, 00:55
• Crypto giant Binance freezes $2.5bn of assets over suspected hackThe firm said transactions are suspended while it conducts security checks and will "cover all losses".BBC News · 30 Oct, 00:46
• Binance says $2.54bn in crypto funds frozen amid ‘potential security issue’Binance founder says world's largest crypto exchange appears to have been hacked.Al Jazeera · 30 Oct, 00:29
• Binance founder says exchange targeted in apparent hackTether and Circle freeze billions of dollars’ worth of their coins as world’s largest crypto exchange investigates security issueFinancial Times · 30 Oct, 00:18
• World’s largest crypto exchange investigating reports of potential hackBinance said the extent of damages was not known and had not confirmed whether funds had been pilfered Binance, the world’s largest cryptocurrency exchange, said on Thursday it is investigating reports of a potential security issue as its founder said the incident “does look like a hack on Binance”. It wasn’t immediately clear the extent of the damage hackers might have been able to accomplish and Binance had not explicitly confirmed that funds had been pilfered, but stablecoin issuers quickly froze funds Thursday evening. Continue reading...The Guardian · 30 Oct, 00:02
• Binance founder says crypto exchange may have been hacked — leading to firms freezing over $2BBinance, the world's largest cryptocurrency exchange, said its teams were reviewing all relevant information with urgency and added that user funds were safe.New York Post · 29 Oct, 23:43
• Crypto worth billions frozen over 'potential security issue'Crypto worth billions of dollars has been frozen as a major exchange investigates a "potential security issue".Sky News · 29 Oct, 23:40
• Circle, Tether freeze funds impacted by potential Binance 'security issue'Binance, the world's largest crypto exchange, said it was actively investigating the matter and that funds are "completley safe."CNBC · 29 Oct, 22:47
• Binance pauses withdrawals as hackers suspected of stealing billions in cryptoSome estimates say hackers stole billions in crypto from Binance, the world's largest cryptocurrency exchange, during a cyberattack on Thursday.TechCrunch · 29 Oct, 22:27
• Binance 'hacked' as $2.7bn 'drained' from wallets on crypto exchange – liveBinance said it is aware of the concerning reports of a 'potential security issue' and its teams are 'actively investigating'The Mirror · 29 Oct, 22:01

In this story: Binance · Changpeng Zhao · Tether · Circle · Ripple · Arkham Intelligence

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log