Abstract:
Binance, the world's largest cryptocurrency exchange, has suspended trading as it investigates what may be the largest cyber theft in history. "Binance does appear to have been hacked," Binance founder Changpeng Zhao said in a post on social media platform X. "User funds are safe."
Changpeng Zhao no longer runs the world's largest cryptocurrency exchange, but remains its largest shareholder. Stablecoin issuers Tether and Circle have moved quickly to freeze approximately $1.7 billion in stolen assets, he added. Binance later revised this figure to $3 billion across several different assets. But some cybersecurity analysts say the amount stolen appears to be billions of dollars higher.
Binance stated that it has suspended all deposits and withdrawals, and its team is conducting security checks, freezing funds, and cooperating with law enforcement authorities.
When stablecoin issuers freeze stolen funds, hackers are unable to move, transfer or monetize those specific crypto tokens. These issuers essentially blacklist hackers’ cryptocurrency wallet addresses, locking those crypto tokens in the wallet before the hacker can exchange them for other cryptocurrencies or launder them through mixers.
Tyler of SEAL 911, a blockchain security organization. Taylor Monahan said the value of the funds stolen by the hackers was "well over $2 billion" and could be as high as $5.5 billion. "However, information changes rapidly and it will take time to confirm the exact numbers," Monahan said.
Chainalysis, a blockchain tracking company, posted on X that it estimated that the stolen funds amounted to $5.9 billion, far exceeding the amount of any previous cyber theft. Investigators at blockchain analytics firm TRM Labs estimate that more than $6 billion was stolen. The company's global policy director Ali. Ari Redbord said that this makes this case "the largest bank robbery in human history."
The previous record for the largest cyber theft was set in 2025, when hackers stole $1.5 billion from cryptocurrency exchange Bybit.
A Binance spokesperson said: "Our team is aware of reports of potential security issues and is currently actively investigating." The spokesperson also said: "Please rest assured that user funds are completely safe."
Just a few hours before Changpeng Zhao posted, the prediction market platform Polymarket disclosed that it had also been attacked by hackers, and at least US$2.6 million in user funds were stolen from the company's account.
Cryptocurrency exchanges are attractive targets for hackers. Unlike stock exchanges, which provide trading services but do not actually hold securities on behalf of investors, many cryptocurrency exchanges hold cryptocurrencies for their clients. As a result, many cryptocurrency exchanges have experienced thefts, with hackers stealing customer funds from their cryptocurrency wallets in the hope of monetizing them.
"Just in terms of dollar amounts, the losses are huge," said Kevin ., co-founder of JPEG Trading. Kevin March said. He expects the loss to be manageable for Binance, given its $1.2 billion insurance fund and the swift action by Tether and Circle to freeze stolen assets.
Binance’s U.S. business unit, Binance.US, said it was not affected by the security incident.
Comments