Binance Reports $2.54 Billion in Frozen Funds After Reports of Potential Security Issue
Key Facts
Binance said the total frozen funds it had tracked reached $2.54 billion on the evening of October 29, after saying it was investigating reports of a potential security issue. The platform temporarily suspended deposits and withdrawals during security checks, the freezing of funds and cooperation with law enforcement, according to the Associated Press. A company spokesperson said user funds were "completely safe," while Binance said its teams were working around the clock to address the matter. The company said the frozen-funds figure could rise as tracking and freezing continued. Binance did not explicitly confirm that funds had been stolen, so its statements continued to describe the incident as a potential security issue.
Circle said it had frozen funds worth more than $800 million, while Tether announced it had frozen more than $1.5 billion linked to the potential incident. In a separate report, Reuters said Circle and Tether had together frozen more than $2.38 billion in stablecoins on Thursday. The agency added that Ripple had frozen about $200 million, citing a post by Yi He. These figures differ in scope and source from Binance's total of $2.54 billion, the figure the platform said it had tracked in frozen funds. Binance founder Changpeng Zhao said the incident appeared to be a hack, while Binance.US, a separate platform, said it was unaffected.
Bitcoin fell 3.2% to below $79,000 in a snapshot on the evening of Thursday, October 29, according to the Associated Press. That reflects a move at a specific time, not a daily close; EL7 data showed a close of $77,991.89 that day. In Reuters coverage published on October 30, Bitcoin fell to a six-week low of $77,646, while Ether dropped to a two-month low of $2,238.76. BNB fell more than 8% in 24 hours to $694, the agency said. EL7 data showed Bitcoin closing at $76,938.59 on October 30, compared with the previous day's close of $77,991.89.
Investing.com provided another market snapshot on October 30, saying Bitcoin had fallen 3.5% to $78,505.9 and was on track for a monthly loss of 6.1% in October. CoinGlass estimated that about $5.3 billion in cryptocurrencies had been withdrawn from Binance, including an estimated $1.66 billion in USDT, 17,985 Bitcoin valued at about $1.45 billion, and $767 million in USDC. This remains an estimate by CoinGlass reported by Investing.com, not a confirmed total announced by Binance. Investing.com said BNB balances were unaffected among the withdrawals tracked by CoinGlass. It also noted that selling pressure in cryptocurrencies coincided with elevated U.S. inflation data and a broader decline in risk appetite linked to the technology sector.
Digital assets moved as investors tracked technology companies' results and spending on artificial intelligence, though the data do not establish that corporate results caused Bitcoin's decline. Amazon shares fell 7% in extended trading on October 29 after the results were announced, according to the Associated Press. The company said it expected cash capital spending of about $220 billion in 2026, with most directed toward building data centers for artificial intelligence. Investors focused on Amazon's core business and the scale of cash spending tied to artificial intelligence. These developments formed the backdrop to market moves, while direct cryptocurrency coverage was linked to reports of the security issue and Binance's freezing measures.
Against the backdrop of interest rates, the Federal Reserve left its main interest rate unchanged on October 28. The yield on two-year U.S. Treasury notes rose above 4.79% after the announcement, compared with 4.70% late on October 27, before falling to 4.69%. Chair Kevin Warsh said the central bank wanted to monitor how conditions developed before taking its next step, while bond moves reflected a decline in traders' estimates of the likelihood of future increases. On October 30, Bitcoin coverage focused on the low of $77,646 and the security investigation and fund-freezing measures. Binance did not specify in the published information when checks would end or deposits and withdrawals would resume.