Binance Confirms $2.54 Billion Frozen Amid Probe Into Potential Security Issue
Key Facts
Binance said in an update reported by the Associated Press on October 29, 2026, that the total assets it had confirmed frozen stood at $2.54 billion, with the figure potentially rising as it continued to trace assets. The announcement came as the exchange investigated reports of a "potential security issue," without confirming a theft or specifying the scale of any damage. Binance said deposits and withdrawals were temporarily suspended while it conducted security checks, froze funds and cooperated with law enforcement. The confirmed figure for frozen assets is separate from estimates circulating about funds suspected of leaving wallets. Exchange founder Changpeng Zhao said the incident "looks like a platform hack," while Binance said user funds were safe.
A report published by Axios on October 29 estimated that more than $5.7 billion had left user wallets on Thursday afternoon, but described the incident as a suspected hack. Binance has not confirmed that total, so the Axios estimate is not a final figure announced by the exchange. Circle, meanwhile, said it had frozen the equivalent of more than $800 million in currencies linked to the incident, in coordination with law enforcement. Tether's chief executive said his company had frozen the equivalent of more than $1.5 billion in currencies linked to a potential platform hack. The companies' statements show that the freezes covered currencies linked to the incident, while the amount of funds suspected of leaving remained an unconfirmed estimate.
Binance co-founder Yi He said the exchange "will cover all losses resulting from the hack," without providing further details about the incident. The pledge came as Binance affirmed that user funds were safe and continued to suspend deposits and withdrawals during its checks. Yi He's statement was not accompanied by details on how losses would be covered or their amount. Binance said it would continue working with law enforcement, token issuers, blockchain intelligence firms and industry partners to trace and freeze additional assets. The exchange's position thus combined assurances that customer funds were safe with a commitment to cover losses, as its investigation and cooperation to trace assets continued.
The developments coincided with a decline in cryptocurrency prices. On Thursday evening, October 29, Bitcoin fell 3.2% to below $79,000, according to the Associated Press. In early Asian trading on Friday, October 30, Bitcoin fell about 2% to a six-week low of $77,646, while Ether dropped about 2% to a two-month low of $2,238.76. BNB also lost more than 8% over 24 hours, reaching $694. These figures describe market moves over the two periods; the sources attributed the price movements only to their coincidence with news of the incident.
The historical comparison includes the February 2025 theft from Bybit, which the U.S. Federal Bureau of Investigation said involved about $1.5 billion in virtual assets. The bureau attributed the theft to North Korea and said those responsible continued to convert some assets into Bitcoin and other virtual assets and distribute them across thousands of addresses on several networks. That earlier incident provides context for the scale of the estimate circulating in the Binance case, but does not establish that the amount estimated in the current case was stolen or that the circumstances were similar. Binance said its next proof-of-reserves snapshot would be taken on November 1, allowing declared assets to be compared with customer balances after the incident. Until then, the exchange said it would continue coordinating with law enforcement, token issuers and blockchain intelligence firms to trace and freeze additional assets.