WuBlockchain
Binance is investigating a potential security issue after co-founder Changpeng Zhao said the exchange appeared to have been hacked. Tether froze more than 1.567 billion USDT and Circle froze more than 800 million USDC linked to the incident, in coordination with law enforcement.
Why it matters
The freezes show how stablecoin issuers can intervene when funds are linked to a suspected incident. CZ thanked both companies and said he expects Binance user funds to be fully covered. Binance said user funds are safe, but has not described the security issue in detail.
Market impact
Binance temporarily suspended withdrawals while it conducts security checks. It also paused Binance Alpha trading, including token purchases and instant trades using spot-wallet funds. Both services are set to resume once the issue is resolved. Binance urged users to avoid unofficial links, messages and requests for account information.
Frequently asked questions
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How much USDT and USDC did issuers freeze?
Tether froze more than 1.567 billion USDT, while Circle froze more than 800 million USDC linked to the incident.
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What did Binance say about customer funds?
Binance said user funds are safe. CZ said he expects all user funds to be fully covered.
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Why were Binance withdrawals suspended?
Binance temporarily suspended withdrawals while its team conducts security checks and investigates the potential issue.
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What Binance Alpha activity was paused?
Binance temporarily suspended Alpha trading, including token purchases and instant trading using funds from spot wallets.
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What should Binance users watch out for during the investigation?
Binance warned users to beware of scams, unofficial links and messages, and requests for account information.
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