Binance, the world’s largest cryptocurrency exchange, has confirmed that it is investigating a security incident after reports emerged that billions of dollars in digital assets had been drained from its cryptocurrency wallets.

The company acknowledged the reports in a statement, saying its security teams were urgently reviewing the situation.

Binance also assured customers that their funds remained safe while promising to provide further information through its official communication channels.

A spokesperson for the exchange confirmed that withdrawals had been temporarily suspended across multiple blockchain networks as a precautionary measure.

The development followed comments from Binance founder Changpeng Zhao, who suggested that the company may have experienced a cyberattack.
Although Zhao no longer manages the exchange, he remains its largest shareholder.

He expressed confidence that affected users would be compensated but did not provide detailed evidence supporting the claim.

The scale of the reported theft remains uncertain, with cryptocurrency observers estimating that between $2 billion and more than $5.7 billion may have been taken from Binance’s internet connected wallets.

Financial technology company Circle reportedly froze approximately $800 million in Tether related to the incident, while cryptocurrency issuer Tether froze another $1.56 billion.

These interventions could help limit the movement of stolen assets, although investigators are still working to establish the full extent of the losses.
If confirmed, the incident could become one of the largest cryptocurrency security breaches in history.

The previous record was set in 2025 when hackers stole approximately $1.4 billion from cryptocurrency exchange Bybit in an attack attributed to North Korean hackers.

At the time of the initial reports, Binance had not disclosed who was responsible for the latest incident or whether the attackers had contacted the company.

The exchange also urged customers to remain cautious of fraudulent messages and unofficial requests for account information.

Separately, prediction market platform Polymarket temporarily suspended trading following a security incident involving one of its third party service providers.

The company said the external provider had been compromised, resulting in the temporary suspension of withdrawals.

Security researchers estimated that approximately $2 million in user funds had been stolen through the incident, which reportedly involved software developed by a company called DebugBear.

The developments highlight the growing cybersecurity challenges facing cryptocurrency exchanges and digital financial platforms, where vulnerabilities involving internal systems and external service providers can expose significant amounts of money to theft.

Source: TechCrunch