Binance Investigates Potential Hack After $2 Billion-Plus in Tokens Left Exchange Wallets

Stablecoin issuers Tether and Circle quickly froze funds in response to the incident.

Binance, the world’s largest crypto exchange, said Thursday it is investigating a “potential security issue” after more than $2 billion of various crypto tokens left Binance exchange wallets in a potential hack, according to an analysis of blockchain transactions.

Tether has frozen more than $1.57 billion of USDT stablecoins related to the potential Binance hack, Tether CEO Paolo Ardoino said on X, while Circle has frozen more than $800 million of USDC stablecoins associated with the incident “in coordination with law enforcement,” Circle CEO Jeremy Allaire said on X.

Changpeng Zhao, a co-founder and former CEO of Binance, said on X that “as a shareholder, I expect all user funds will be fully covered.”

The hack, if confirmed, would be the biggest in crypto history and could impact other crypto companies. For example, Ethena, which has issued $5 billion of USDe digital dollars, said it has total unrealized exposure to Binance of $8.8 million. Bitcoin, Ether, and Solana token prices fell after reports of the hack emerged.