Binance has shut down withdrawals across multiple networks following what the world's largest cryptocurrency exchange describes as a security incident, with users reporting funds disappearing from their wallets. The company confirmed to TechCrunch on October 29 that it is "actively investigating" reports of a potential breach. If estimates hold, the theft could rank among history's biggest cryptocurrency heists, potentially exceeding the $1.4 billion stolen from exchange Bybit in 2025 by North Korean hackers.
Industry observers say at least $2 billion has been drained from Binance's hot wallets, which are internet-connected storage systems for cryptocurrency. Some estimates place losses as high as $5.7 billion in crypto, though these figures haven't been verified and the theft may still be ongoing. Financial tech company Circle froze roughly $800 million in Tether moving through its networks, while crypto firm Tether froze approximately $1.56 billion tied to the Binance incident.
Binance spokesperson Ross O'Leary stated the exchange has "temporarily suspended withdrawals on multiple networks following a security incident as a precautionary measure." The company assured in an emailed statement that "user funds are completely safe" and that security teams are "reviewing all relevant information with urgency." Binance founder Changpeng Zhao, who no longer runs the company but remains its largest shareholder, posted on X that he anticipates users' funds will be "fully covered," though he didn't explain how. The exchange warned users to "remain cautious of scams and should not trust unofficial links, messages, or requests for account information."
The breach highlights the persistent vulnerability of hot wallets, which must stay connected to the internet to process withdrawals and trading but remain exposed to hackers who can exploit security gaps. The identity of the attackers remains unknown, and Binance hasn't disclosed whether hackers made contact. The freeze actions by Circle and Tether represent an effort to limit the damage by blocking stolen assets from moving through their networks, though billions may have already escaped. The incident coincided with a separate breach Thursday at prediction market platform Polymarket, which briefly paused trading after a third-party software provider called DebugBear was compromised, leading to roughly $2 million stolen from users. For exchanges holding billions in customer assets, the tension between accessibility and security remains unresolved, and the scramble to freeze funds suggests coordination among platforms may prove critical when breaches of this scale unfold.