Binance, the world’s largest cryptocurrency exchange by trading volume, is investigating a potential security breach after its founder, Changpeng Zhao, said the platform appeared to have been hacked.
In a post on X on Thursday, Zhao, popularly known as CZ, said users’ funds are safe, even as reports emerged of billions of dollars’ worth of cryptocurrency moving from Binance wallets.
‘User funds are safe! It does look like a hack on Binance. Appreciate the quick freeze from Tether ($971 million) and Circle ($823 million)’, he said in a post on X.
Zhao said although he no longer manages Binance, he expects the exchange to cover all user funds.
‘I don’t manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered’, he said.
Binance, in a separate statement, said its teams were aware of reports of a potential security issue and are investigating the incident.
The exchange said its security teams are reviewing relevant information and would provide updates through its official channels once details have been verified.
‘At this stage, we have not confirmed any impact to user funds’, Binance said.
The company also advised users to remain cautious of scams, warning them against clicking unofficial links, responding to suspicious messages or sharing account information through unauthorised channels.
The reported freeze involves USDT and USDC, the stablecoins issued by Tether and Circle, respectively.
Stablecoins are digital currencies designed to maintain a relatively stable value, usually by being pegged to a conventional currency such as the US dollar.
Their issuers have the ability to freeze tokens held at specific blockchain addresses, preventing the assets from being transferred.
The combined $1.79 billion frozen by the two issuers represents a significant intervention in the incident, although the total value of assets affected and any actual financial loss have not been established.
