Binance Halts Withdrawals Amid Suspected Multi-Billion Dollar Crypto Hack

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Binance has temporarily suspended withdrawals after hackers reportedly stole billions from the exchange's hot wallets, marking one of the largest crypto thefts to date, with investigations ongoing.

Binance, the world's largest cryptocurrency exchange, has temporarily paused withdrawals following a serious security incident involving a suspected multi-billion dollar theft from its hot wallets. The company confirmed to TechCrunch that it is actively investigating reports of funds being drained from users' accounts, emphasizing that user funds remain secure while it assesses the situation.

The hack reportedly involves billions in crypto stolen from Binance's wallets connected to the internet, with some estimates suggesting losses exceeding $5.7 billion, though this figure remains unconfirmed and the theft may still be ongoing. Crypto tracking sources have indicated at least $2 billion has been siphoned from Binance's hot wallets alone.

In response to the breach, financial technology firm Circle froze approximately $800 million in Tether transactions passing through its systems, and Tether itself froze about $1.56 billion related to the hack. Binance spokesperson Ross O’Leary stated that withdrawal suspensions across multiple networks are precautionary measures amid the security probe.

Binance’s founder, Changpeng Zhao, who remains the largest shareholder though no longer manages day-to-day operations, acknowledged the likelihood of a hack in a post on X (formerly Twitter), assuring that users’ funds are expected to be fully covered without elaborating further.

The identity of the perpetrators remains unknown, and Binance has not disclosed whether any communication has been received from the attackers. If confirmed, this breach would rank among the largest in cryptocurrency history, surpassing previous major hacks such as the $1.4 billion theft from exchange Bybit in 2025.

Separately, prediction market platform Polymarket temporarily halted trading after a third-party software provider, DebugBear, was compromised, resulting in an estimated $2 million stolen from users.

The full impact of the Binance incident is still unfolding as investigations continue. Binance has urged users to remain vigilant against scams and to only rely on official communications from the exchange.