Cryptocurrency exchange Binance announced on Thursday that it has frozen digital assets valued at more than $2.5bn (£1.87bn) as a precautionary measure while investigating a suspected security breach. The company stated that all deposits and withdrawals are temporarily suspended as its security teams conduct comprehensive checks, and pledged to "cover all losses" resulting from the incident.
According to BBC News, Binance's former chief executive Changpeng Zhao, who retains a majority stake in the firm, confirmed the nature of the threat.
"It does look like a hack on Binance,"Zhao stated in a series of online alerts.
The breach extends beyond Binance itself. Zhao revealed that two other major cryptocurrency platforms, Tether and Circle, have also taken action to freeze approximately $1.7bn in assets suspected of being stolen. Both firms have been contacted for additional comment on their response measures.
Binance indicated that the total value of frozen assets may rise as its teams continue their investigation in coordination with law enforcement agencies and other partners working to identify and recover additional compromised funds. The exchange stated:
"We are working around the clock and will share a full post-mortem once the investigation is complete. Please rely only on official Binance channels for updates,"while assuring users that their funds remain secure.
As the world's largest cryptocurrency exchange measured by daily trading volumes, Binance's security incident carries significant implications for the broader digital asset ecosystem. The company's commitment to compensating affected users represents an attempt to maintain confidence during the investigation period.
