Binance said it had frozen more than $2.5 billion (£1.87 billion) in digital assets while investigating a suspected security breach, temporarily suspending deposits and withdrawals and promising to compensate users for any losses. The cryptocurrency exchange said it was working with law enforcement and other partners to trace and seize additional funds.
Binance suspends deposits and withdrawals
In a series of online warnings, Binance said its team was carrying out safety checks and that all deposits and withdrawals had been temporarily suspended. The company said it would “compensate for all losses.”
“It looks like a hack on Binance,” said Qiao Changpeng, Binance’s former boss and current majority shareholder in the company.
Chao added that two other cryptocurrency platforms, Tether and Circle, had also frozen approximately $1.7 billion in stolen assets.
Circle freezes more than $800 million
Circle chief executive Jeremy Allaire said the company was “closely following reports of potential exploits involving Binance” and had frozen more than $800 million in assets linked to the incident.
Circle is the issuer and co-creator of USDC, one of the world’s largest US dollar-denominated cryptocurrencies.
Tether did not immediately respond to inquiries from the BBC.
Binance said the amount of frozen funds could continue to increase as its team worked with law enforcement and other partners to track and seize additional assets.
“We are working around the clock and will share a full post-mortem once the investigation is complete. Please rely only on Binance’s official channels for the latest information,” the company said, adding that users’ funds were safe.
Cryptocurrency prices fall
Binance is the world’s largest cryptocurrency exchange by daily trading volume.
Bitcoin fell by about 5% after the warning. Other major cryptocurrencies, including Ethereum and Solana, also saw sharp declines.
Source: www.bbc.co.uk