Binance suspends withdrawals amid suspected crypto theft
Binance pauses withdrawals after reported security incident
Binance temporarily suspended withdrawals on multiple networks after reports that funds were being drained from wallets at the cryptocurrency exchange. The company confirmed that it was investigating a potential security issue, while crypto watchers estimated that at least $2 billion had been taken from Binance hot wallets.
In a statement to TechCrunch, Binance said it was aware of reports of a possible incident and that its security teams were urgently reviewing relevant information. The exchange said user funds were safe and urged customers to avoid scams, unofficial links, messages and requests for account information.
Binance spokesperson Ross O’Leary said the withdrawal restrictions were a precaution following the security incident. Changpeng Zhao, Binance’s founder and largest shareholder, separately wrote on X that the company had likely been hacked. Zhao said he expected users’ funds to be fully covered, without explaining the basis for that expectation.
Estimates remain unconfirmed as asset issuers freeze funds
Hot wallets are internet-connected cryptocurrency wallets used to hold assets that must remain available for transfers. Their connectivity can make them operationally useful, but the reported outflows put Binance’s exposure under close scrutiny while the exchange investigates.
Circle froze about $800 million in Tether as the assets moved through its networks. Tether also froze approximately $1.56 billion connected to the suspected Binance hack. Those measures were reported as the scale of the apparent theft was still being assessed.
Some estimates placed Binance’s losses as high as $5.7 billion in crypto, but those figures were not confirmed, and the reported theft could still be ongoing. Binance did not identify an attacker or say whether it had received communications from those responsible.
A potential landmark breach for the crypto sector
If losses in the billions are confirmed, the event could rank among the largest crypto breaches recorded. The comparison comes after Bybit suffered a single breach of $1.4 billion in 2025, an incident attributed to North Korean hackers.
The Binance incident followed a separate disruption at prediction-market operator Polymarket, which briefly halted trading after a third-party company was compromised. Security researchers said attackers took around $2 million in user funds after compromising software developed by DebugBear.
For businesses holding or moving digital assets, the immediate implication is to treat withdrawal interruptions and account-security warnings as operational incidents: confirm instructions only through official channels, monitor counterparty notices, and plan for restricted access to funds during an investigation.