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Cyberattack suspected at Binance as nearly $3 billion in assets frozen, Bitcoin plunges
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- The cryptocurrency exchange said it had frozen nearly $3 billion in assets and was working with law enforcement to track suspicious funds.
- Binance pledged to cover all losses resulting from the incident and said users' funds would remain protected.
Binance, the world's largest cryptocurrency exchange, has suspended Thursday all deposits and withdrawals as part of a comprehensive investigation into a security incident suspected to involve a major cyberattack. The platform said it had frozen nearly $3 billion in assets so far, as cryptocurrency markets experienced a sharp sell-off.
In a statement posted on X, Binance said its technical teams were working around the clock to contain the incident, pledging to fully cover all losses resulting from the breach.
The exchange said suspending deposits and withdrawals was a precautionary measure to allow for detailed security checks and the tracking of suspicious funds in direct coordination with law enforcement agencies.
The value of frozen assets rose to approximately $3 billion, following an initial announcement that $2.54 billion had been secured. The figure could increase further. Binance has not disclosed the actual amount of funds that may have been stolen.
Binance co-founder and largest shareholder Changpeng Zhao, known as CZ, said he believed the platform had been hacked, expressing confidence that users' funds would remain fully protected.
The developments triggered widespread selling across cryptocurrency exchanges on Friday, with Bitcoin falling below $77,000 to reach $77,646 at one point, its lowest level since September.
Ethereum also dropped to $2,238.76, its lowest price in two months, while Binance's BNB token plunged more than 8% to trade at $694.
The concerns extended to US financial markets, which closed lower, with the Nasdaq 100 technology index falling approximately 1.4%.
Stablecoin issuers also moved to contain the fallout. Tether CEO Paolo Ardoino announced that more than $1.5 billion in potentially related assets had been frozen, while Circle Internet Group CEO Jeremy Allaire confirmed the freezing of $800 million in its stablecoin.
Meanwhile, blockchain analytics firm Arkham identified digital wallets allegedly linked to the hacker holding approximately $5.9 billion. The company cautioned that this figure did not necessarily represent the total amount stolen.
