Crypto firms freeze $1.8 bn after possible Binance hack

Crypto firms Circle Internet Group and Tether froze about $1.8 billion in stablecoins after a possible security breach at Binance, the world’s largest crypto exchange. Binance said it is investigating a potential security issue on its trading platform but has not confirmed an exploit. A Binance spokesperson said the team is aware of reports, is reviewing information urgently, and assures that user funds are completely safe. Circle chief executive Jeremy Allaire posted that the company froze more than $800 million of USD Coin linked to the incident. Tether chief executive Paolo Ardoino wrote on X that his firm froze over $1.5 billion of USDT that might be tied to the same breach. Binance co‑founder Yi He added that Ripple helped block the movement of $200 million tied to the suspected attack. Arkham Intelligence, a crypto data firm, traced nearly $6 billion in assets across 55 wallets to the potential exploit, covering bitcoin, ether, solana and several stablecoins. Following the statements, bitcoin dropped more than 3%, slipping below $80,000, ether fell close to 4%, and solana lost about 3%. Circle’s shares fell roughly 5% in after‑hours trading. The frozen funds likely represent only a fraction of the total amount that may have been taken.

Context

Binance handles the highest daily trading volume in the crypto market, so any security concern can quickly affect prices of major cryptocurrencies and the value of stablecoins. Frozen funds are a precaution to prevent further loss while investigators trace the wallets. Ripple’s involvement shows cooperation among firms to contain potential theft.