Binance Pauses Withdrawals as Hackers Suspected of Stealing Billions in Crypto
Published: October 30, 2026
Category: Cybersecurity & Cryptocurrency
Binance, the world’s largest cryptocurrency exchange, has confirmed it is investigating a major security incident after users reported funds being drained from its wallets. The exchange has temporarily suspended withdrawals across multiple networks as a precautionary measure, and early estimates suggest losses could reach into the billions.
Binance Confirms Investigation
In an emailed statement to TechCrunch, Binance said it was “aware of reports of a potential security issue and are actively investigating.” The company sought to reassure customers, stating that “user funds are completely safe.”
“Our security teams are reviewing all relevant information with urgency, and we will provide updates through official Binance channels as soon as we have verified information,” the statement continued. Binance also warned users to “remain cautious of scams and should not trust unofficial links, messages, or requests for account information.”
Binance spokesperson Ross O’Leary confirmed that the exchange had “temporarily suspended withdrawals on multiple networks following a security incident as a precautionary measure.”
Zhao Weighs In
News of the breach emerged hours after Binance founder Changpeng Zhao posted on X that the company had likely been hacked. Zhao, who no longer runs the company but remains its largest shareholder, said he expects users’ funds to be “fully covered,” though he did not explain the basis for that claim.
Stablecoin Issuers Move to Freeze Funds
In a rapid response, financial technology giant Circle froze approximately $800 million in Tether as it passed through its networks. Tether itself froze about $1.56 billion related to the Binance hack, a significant intervention aimed at limiting the damage.
The Scale of the Loss
Crypto watchers estimate that at least $2 billion has been drained from Binance’s hot wallets, which are internet connected wallets used to store cryptocurrency for everyday operations. Some estimates suggest Binance may have lost upwards of $5.7 billion, though those figures remain unconfirmed and the theft may still be ongoing.
It is unclear who is behind the attack, and Binance has not said whether it has received any communication from the hackers.
If confirmed in the billions, this would likely rank among the largest crypto breaches in history. For comparison, hackers stole a record $1.4 billion in a single breach from exchange Bybit in 2025, an attack blamed on North Korean hackers.
A Separate Incident at Polymarket
The Binance breach came on a difficult day for the crypto industry. In what appears to be a separate incident earlier on Thursday, prediction market giant Polymarket briefly halted trading after confirming that a third party company had been compromised, prompting the platform to pause withdrawals. According to security researchers, hackers stole around $2 million in user funds after compromising software developed by a company called DebugBear.
Conclusion
The Binance incident is a stark reminder that even the largest and most established crypto exchanges remain vulnerable to sophisticated attacks. The involvement of Circle and Tether in freezing hundreds of millions in stablecoins shows how coordinated industry response can limit losses, but it also underscores how much value now sits in internet connected hot wallets. If the final tally reaches into the billions, the breach will reshape how exchanges approach custody and security. For now, Binance users face an anxious wait for withdrawals to resume and for verified details about what was taken and whether their funds are truly safe.
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