Binance probes potential hack as Tether and Circle freeze over $2.3 billion
The exchange said user funds remain safe as the two issuers lock up billions amid speculation of a hack.
By Felo News Desk · Published
Binance, the world’s largest cryptocurrency exchange, said on Thursday it is investigating a "potential security issue" after large transfers raised hack concerns. Stablecoin issuers Tether and Circle responded by freezing more than $2.3 billion in assets linked to the incident.
What happened
On Thursday evening, Binance’s founder noted that the activity "does look like a hack on Binance." The exchange’s spokesperson said the security teams were reviewing all relevant information with urgency and assured users that their funds were safe. In reaction, Tether’s CEO Paolo Ardoino announced on X that the company had frozen more than $1.5 billion (Independent) or $1.567 billion (NBC) of its stablecoin. Circle’s co‑founder and CEO Jeremy Allaire wrote that Circle had frozen the equivalent of over $800 million in coordination with law enforcement.
What the reports add
Independent reported the specific figures of "more than $1.5 billion" frozen by Tether and "more than $800 million" frozen by Circle, while NBC cited a precise $1.567 billion figure for Tether and did not give an exact amount for Circle’s freeze. Both outlets noted that Bitcoin’s price fell 3.2% to under $79,000 following the news.
What was said
"Our teams are aware of reports of a potential security issue and are actively investigating. Rest assured that user funds are completely safe," a Binance spokesperson said, as reported by NBC.
"Rest assured that user funds are completely safe,"
Paolo Ardoino told X, "we have frozen the equivalent of more than $1.5 billion in currency related to a potential Binance exchange hack," according to Independent.
Jeremy Allaire posted on X that Circle had frozen "the equivalent of more than $800 million in currency associated with the incident in coordination with law enforcement," Independent reported.
How it came about
The incident follows a series of large transfers on Binance that caught traders’ attention earlier on Thursday. It arrives after the exchange announced a freeze of $2.54 billion in withdrawals on 30 October, as detailed in Felo’s earlier coverage. Binance was founded in 2017 by Changpeng Zhao, who pleaded guilty in 2023 to a felony related to money‑laundering failures and stepped down as CEO. The platform’s lack of government insurance for user deposits adds further risk, a point highlighted by NBC.
Key facts
- Binance is investigating a potential security issue after large transfers raised hack concerns. (independent.co.uk)
- Tether froze more than $1.5 billion in stablecoin linked to the incident. (independent.co.uk)
- Circle froze over $800 million in coordination with law enforcement. (independent.co.uk)
- Bitcoin price dropped 3.2% to under $79,000 after the reports. (nbcnews.com)
- Binance’s founder said the activity "does look like a hack on Binance." (independent.co.uk)
Where accounts differ
- Exact amount frozen by Tether: more than $1.5 billion (independent.co.uk); $1.567 billion (nbcnews.com)
- Exact amount frozen by Circle: more than $800 million (independent.co.uk); did not specify exact amount (nbcnews.com)
Timeline
- 2023-01-01 — Binance founder Changpeng Zhao pleaded guilty to a felony related to money‑laundering failures and stepped down as CEO.
- 2026-10-30 — Binance froze $2.54 billion in withdrawals after a hack drained billions from hot wallets.
- 2026-10-29 — Binance announced investigation of a potential security issue; Tether and Circle froze billions in response.
Sources
- [1] independent.co.uk
- [2] nbcnews.com
