Binance Investigates Security Breach After Stablecoin Issuers Freeze Billions

Los Angeles, CA. Binance, the world’s largest cryptocurrency exchange, is investigating a potential security issue that its founder believes is a hack. The investigation began on Thursday, October 29. The company stated that it is reviewing all relevant information with urgency. A Binance spokesperson said user funds are completely safe. The exchange has not explicitly confirmed that funds were stolen.

Stablecoin issuers reacted quickly to the incident. Tether and Circle froze funds on Thursday evening. Jeremy Allaire, co-founder and CEO of Circle, posted on X that the company froze more than $800 million in currency. He noted that the freeze occurred in coordination with law enforcement. Paolo Ardoino, CEO of Tether, said his company froze more than $1.5 billion in currency. Ardoino described the action as a response to a potential Binance exchange hack.

Market prices shifted in response to the news. Bitcoin dropped 3.2 percent on Thursday evening. The price fell to under $79,000. Binance was founded in 2017 by Changpeng Zhao. Zhao stepped down as CEO in 2023 after pleading guilty to a felony related to money laundering. President Donald Trump pardoned Zhao in 2025. Zhao was released from prison last year after serving a sentence for violating the Bank Secrecy Act. He was the first person sentenced to prison for such violations. Prosecutors stated that no one had violated those regulations to the extent Zhao did.

Zhao addressed the incident on X on Thursday. He said user funds are safe. He added that the incident does look like a hack on Binance. Zhao noted that he does not manage Binance anymore. As a shareholder, he expects all user funds will be fully covered. Zhao and Binance have been key supporters of some of the Trump family’s crypto enterprises.

Binance said it will provide updates through official channels once it has verified information. The security teams are currently reviewing the details of the breach. The extent of the damage remains unclear. The exchange is working to determine the full scope of the security issue.

The company continues to monitor the situation. Stablecoin issuers have already taken steps to protect funds. The market is watching for further developments. Binance remains the largest exchange in the global cryptocurrency market.

Zhao’s legal history includes a guilty plea in 2023. He accepted a plea deal that allowed him to step down. The Bank Secrecy Act requires U.S. financial institutions to know their customers. It also requires them to monitor transactions and file reports of suspicious activity. Zhao’s case marked a first in the enforcement of these laws.