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

Cryptocurrency exchange Binance has said at least $2.54bn in funds have been frozen following a “potential security issue”.

The world’s largest crypto exchange said on Thursday that it had suspended all deposits and withdrawals “as a precaution” while it investigated the situation and engaged with law enforcement.

The company added that user funds were safe.

The price of Bitcoin fell about 5 percent following the incident, dropping below $77,000.

“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,” Binance said in a statement to Al Jazeera.

“Users should remain cautious of scams and should not trust unofficial links, messages, or requests for account information.”

Changpeng Zhao, Binance’s founder and largest shareholder, said the exchange appeared to have been targeted in a cyber heist.

“It does look like a hack on Binance,” Zhao, who no longer manages Binance’s operation after stepping down as CEO in 2023, said in a post on X.

“I don’t manage Binance (.com) anymore, but as a shareholder, I expect all user funds will be fully covered.”