Binance Founder Admits Exchange Appears Hacked Amid $2.5 Billion Freeze

Binance is investigating a potential security breach after its founder stated the incident appears to be a hack. The world's largest cryptocurrency exchange disclosed the issue on Thursday. By evening, industry partners had frozen more than $2.5 billion in funds. The company has not yet confirmed that money was stolen.

Binance was founded in 2017 by Changpeng Zhao. In 2023, Zhao pleaded guilty to a felony regarding money laundering failures on the platform. He stepped down as CEO following that plea. President Donald Trump pardoned Zhao in 2025. Zhao was released from prison last year after serving time for violating the Bank Secrecy Act. He was the first individual sentenced to prison for such violations. Prosecutors noted that no one had previously violated the regulations to that extent. Zhao and Binance have supported several Trump family crypto ventures.

Zhao posted on X on Thursday that user funds are safe. He added that the incident looks like a hack on Binance. As a shareholder, he expects all user funds to be fully covered. A Binance spokesperson said in a statement that teams are working around the clock to resolve the issue. The company promised updates through official channels once information is verified.

Binance suspended all deposits and withdrawals on Thursday. The company is conducting security checks and coordinating with law enforcement. Two hours after the initial disclosure, Binance posted on X that the verified total of frozen funds was $2.54 billion. The company noted the figure may rise as partners trace additional assets.

Stablecoin providers reacted quickly to the incident. Jeremy Allaire, co-founder and CEO of Circle, said the company froze more than $800 million in currency. He noted this was done in coordination with law enforcement. Tether CEO Paolo Ardoino stated on X that Tether froze more than $1.5 billion in currency related to the potential hack.

Bitcoin prices fell 3.2 percent on Thursday evening. The digital asset traded under $79,000 following the news. Binance is working closely with blockchain intelligence firms and industry partners to trace the assets.

The company continues its review of relevant information. It aims to provide verified updates to the public as the investigation proceeds.