Binance says $2.54bn in crypto funds frozen amid ‘potential security issue’

What the report says

Binance, the world’s largest cryptocurrency exchange, said it froze at least $2.54bn in crypto funds after identifying what it described as a “potential security issue.” In a statement reported by Al Jazeera on Thursday, the company said it had suspended deposits and withdrawals as a precaution while it investigated the matter and coordinated with law enforcement. Binance also said user funds were safe and that its security teams were urgently reviewing the available information.

Changpeng Zhao, Binance’s founder and largest shareholder, said on X that the exchange appeared to have been hit by a hack. Zhao, who stepped down as chief executive in 2023 and no longer runs the company, said he expected customer funds to be fully covered if the breach is confirmed. Al Jazeera reported that Bitcoin fell by about 5 percent after the news, briefly dropping below $77,000.

If confirmed, the incident could become one of the largest crypto thefts on record. Al Jazeera noted that it would exceed the $1.5bn theft attributed to the North Korea-linked Lazarus Group in 2025. The report also cited market intelligence firm TRM, which said cyber criminals stole $2.87bn in crypto assets across nearly 150 hacking incidents in 2025. The situation underscores continuing security risks in the digital asset sector and the market impact such events can trigger.