Binance Founder Says Exchange Appears Hacked as $1.8 Billion Frozen

Binance co-founder Changpeng Zhao said the cryptocurrency exchange appeared to have suffered a hack, reporting that stablecoin issuers Tether and Circle had frozen nearly $1.8 billion following suspicious movements from wallets associated with the platform. In an October 29 post on X, Zhao, widely known as CZ, said user funds were safe and expressed confidence that customers would be fully covered. “It does look like a hack on Binance,” Zhao wrote.

Binance separately acknowledged reports of a potential security issue and said its teams were investigating. The exchange has not yet released a definitive account of the incident or confirmed the total amount of any losses.

CZ Says Binance Appears to Have Been Hacked

Zhao addressed the reports after on-chain monitoring accounts identified large transfers from wallets labeled as belonging to Binance. “User funds are safe!” he wrote, before acknowledging the possibility that the exchange had suffered a security breach: “It does look like a hack on Binance.” He also thanked the two major stablecoin issuers for their response: “Appreciate the quick freeze from Tether (~$971m) and Circle (~$823m).”

The figures indicate approximately $1.794 billion in reported freezes. Zhao’s statement marks a significant development from earlier unconfirmed reports of unusual wallet activity. However, his assessment does not establish the technical cause of the incident or the full extent of any unauthorized transfers.

Tether and Circle Freeze Nearly $1.8 Billion

According to Zhao, Tether froze approximately $971 million, while Circle froze a further $823 million. Together, the reported actions covered nearly $1.8 billion in stablecoin assets.

The freezes followed reports of substantial cryptocurrency movements involving Binance-associated wallets across multiple blockchains. On-chain monitoring accounts had previously estimated the value of the transfers at between $2 billion and more than $3 billion, figures that have not been independently reconciled.

The amount reportedly frozen by the stablecoin issuers should not be treated as a confirmed measure of the exchange’s total losses. It also remains unclear how much of the wider reported outflow, if any, involved assets that could not be frozen.

Binance Confirms Security Investigation

Binance’s official account acknowledged the emerging reports in a separate statement. The exchange said its teams were “aware of reports of a potential security issue and are actively investigating,” and advised users to remain alert to scams.

The statement did not confirm that a hack had occurred. Nor did it provide a technical explanation of the reported wallet movements or specify whether customer assets had been lost, and Binance has yet to publish a comprehensive account of the incident.

The distinction between Zhao’s assessment and the exchange’s official position remains important. Zhao described the activity as appearing to be a hack, while Binance confirmed only that it was investigating a potential security issue.

CZ Expects User Funds to Be Fully Covered

Zhao also addressed concerns about customer assets. “I don’t manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered,” he wrote.

The statement reflects Zhao’s position as a shareholder rather than an announcement from Binance’s current management, and his expectation that customers will be covered is not equivalent to a formal guarantee from the exchange. Binance has not yet detailed any reimbursement arrangements or established whether such measures will be necessary. The exchange’s investigation is continuing.

On-Chain Reports Point to Multibillion-Dollar Transfers

The incident emerged after blockchain monitoring accounts reported unusual activity involving Binance hot wallets. Some trackers described large transfers across multiple networks and dozens of cryptocurrencies. Reports also alleged that certain receiving addresses had connections to wallets funded through Tornado Cash, though those claims have not been fully verified.

Earlier estimates of the total movements varied considerably, ranging from approximately $2 billion to more than $3 billion, leaving the scale of the incident unresolved. Large wallet movements can also reflect legitimate exchange operations, making transaction authorization and destination analysis central to determining whether assets were stolen. Zhao’s latest remarks suggest that a security breach may have occurred, but the precise mechanism remains unknown.

Full Impact Remains Unclear

The reported stablecoin freezes represent the clearest financial figures disclosed in connection with the suspected incident. Zhao has identified approximately $1.8 billion in frozen assets and said he expects customers to be protected, while Binance has confirmed an investigation but has not provided a final assessment.

The exchange has not established the total value of any unauthorized transfers, the method used or whether additional assets remain at risk. Further statements from Binance and the stablecoin issuers will be needed to clarify the extent of the incident. For now, the exchange faces an apparent security breach, substantial reported asset freezes and unanswered questions about the total financial impact.