Binance Founder Admits Exchange Likely Hacked as Stablecoin Issuers Freeze Funds
Changpeng Zhao stated the incident appears to be a breach, while Tether and Circle froze over $2.3 billion in currency linked to the exchange.
By Isaac Medina ·
The world's largest cryptocurrency exchange is currently investigating a potential security breach, an event that has triggered immediate defensive measures across the digital asset industry. Changpeng Zhao, the founder of Binance, confirmed on Thursday that the incident looks like a hack, even as company officials maintained that user funds remain secure.
Binance launched in 2017 under the leadership of Zhao. In 2023, he pleaded guilty to a felony for failing to prevent money laundering on the platform and subsequently stepped down as chief executive. President Donald Trump granted Zhao a pardon in 2025. Zhao was released from prison last year after serving a sentence for violating the Bank Secrecy Act. Prosecutors noted that no one had previously violated those regulations to the extent Zhao did. He and the company have remained key supporters of several crypto ventures associated with the Trump family.
On Thursday, Zhao posted on the social media platform X that the situation "does look like a hack on Binance." He clarified that although he no longer manages the company, he expects all user funds to be fully covered in his capacity as a shareholder. A Binance spokesperson issued a statement saying, "Rest assured that user funds are completely safe." The statement added that security teams are reviewing relevant information with urgency and would provide updates through official channels once details are verified.
Stablecoin providers reacted swiftly to the reported breach. Jeremy Allaire, co-founder and CEO of Circle, wrote on X that the company froze more than $800 million in currency associated with the incident. He stated this action was taken in coordination with law enforcement. Paolo Ardoino, CEO of Tether, also posted on X that his company froze more than $1.5 billion in currency related to what he termed a potential Binance exchange hack.
Market values reflected the uncertainty surrounding the incident. The price of bitcoin fell 3.2 percent on Thursday evening, dropping below the $79,000 threshold. Binance has not yet explicitly confirmed that funds were stolen, and the full extent of the damage remains unclear.
The exchange is scheduled to provide further details through its official communication channels as its security teams continue to verify information. Law enforcement agencies are currently engaged in discussions with the affected parties to coordinate their response.
