Binance hack: exchange freezes US$ 2.54 billion and halts withdrawals By Luís Henrique Costa
3 min read
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Digital assets worth US$ 2.54 billion have been frozen at Binance after a suspected hacker attack on its digital wallets, the crypto exchange confirmed. The platform also suspended deposits and withdrawals late on October 29, 2026.
Stablecoin issuers Tether and Circle blocked most of that amount. Together they account for US$ 2.37 billion, about 93% of the total, because nearly all of the frozen value was in stablecoins. In a later update, Binance said the verified frozen total had risen to about US$ 3 billion.
Withdrawals and deposits stay paused with no return date
Binance describes the pause as a precaution while it checks security, freezes funds and cooperates with the authorities. The company says customer funds are safe and will be covered if necessary.
Trading on Binance Alpha, including instant purchases, has also been halted. According to the exchange, its operation in the United States was not affected. Binance says withdrawals will only resume once the security problem is fully resolved, and it has not given a date.
How Tether and Circle froze most of the funds
Tether reported freezing more than US$ 1.567 billion in USDT, a figure tied to a statement from its chief executive, Paolo Ardoino. Circle, according to its chief executive, Jeremy Allaire, blocked more than US$ 800 million in USDC.
Freezing depends on the issuer of each coin. Bitcoin, ether and TRX have no issuer with power to block them, so transfers of those assets cannot be frozen by an issuer. USDT and USDC could only be blocked because Tether and Circle issue them.
See also: Crypto card usage in Brazil doubles to $656 million ahead of October 30 Banco Central deadline
Binance investigates a possible attack with police and blockchain firms
Binance says it is investigating a possible attack together with police, blockchain intelligence companies and industry partners. Its preliminary findings point to a compromised laptop belonging to a DevOps engineer, which may have allowed an attacker to submit unauthorized withdrawals. The exchange says it has found no evidence of a wallet private key leak.
Changpeng Zhao, who no longer runs the company but remains its main shareholder, said it appears there was a hacker attack on Binance. A figure of US$ 1.8 billion circulated publicly, but Binance said that number diverges and does not represent the verified total. According to AFP, Zhao estimated losses at slightly more than US$ 1 billion.
Figures released on October 29 and the estimated impact
- Announcement: 8:30 p.m. Brasília time, according to Binance.
- Verified frozen total: about US$ 3 billion in a later update, against the first figure of US$ 2.54 billion.
- Estimated total impact: about US$ 6.3 billion, although Binance has not confirmed a loss figure or a theft.
What changes for users holding crypto on Binance
- SAFU emergency fund, created in 2018, is reported to hold 15,000 bitcoins, below the roughly 17,000 BTC outflow that trackers flagged. This is a third-party report that Binance has not confirmed.
- Binance tells users to rely only on its official channels for updates.
- The company warned users to ignore unofficial links and messages asking for account details.
Binance files for Brazil license as central bank deadline ends
- February 2025: Bybit loses US$ 1.5 billion in a theft attributed to hackers linked to North Korea, the largest crypto theft on record until then.
- October 30, 2026: the 270-day deadline ends for crypto firms to file requests with Brazil’s central bank, the Banco Central.
- Binance has already filed a request to operate in Brazil as a PSAV, a virtual asset service provider.
- From November 6, 2026, banks and payment institutions may only operate with authorized providers, under Resolution 589.
