Binance freezes $2.5 billion in funds after cyberattack

A major cyberattack on Binance has triggered a freeze on $2.5 billion in funds.

The largest cryptocurrency exchange in the world announced the security breach on Friday at 00:30 GMT. In response, the platform suspended all deposits and withdrawals. Binance stated that its team was conducting security checks and working with police to secure the accounts.

Blockchain analysis firm Chainalysis initially estimated the total impact of the attack at $5.912 billion. Binance officials said the figure could rise as their teams cooperate with law enforcement and industry partners to track additional assets. The company assured users that their funds remain safe and pledged to cover any potential losses.

Paolo Ardoino, the chief executive of Tether, confirmed that his company froze approximately $1.6 billion in USDT tokens related to the incident. Changpeng Zhao, the former head of Binance, commented on the situation by stating that the event appears to be a cyberattack on the platform.

Before the official confirmation, industry observers reported that hackers had gained access to the system. The news of the breach caused prices for most major cryptocurrencies to drop.

The exchange is currently collaborating with blockchain intelligence firms and sector partners to trace the stolen assets. No specific details on the method of the theft have been released by the company or external observers yet.