Binance is investigating a security incident following the unauthorized movement of billions in digital assets across multiple chains.
Tether and Circle responded by freezing over $2.3 billion in funds, while Polymarket experienced a separate third-party compromise affecting select users.
The mysterious money transfer
Fears began when billions of dollars worth of funds were seen being transferred from Binance wallets to external accounts in various digital currencies. Experts and executives at other companies estimate that a total of more than $5,5 billion appears to have left the platform.
Binance co-founder Yi He confirmed that the company is aware of the reports and is investigating, adding that withdrawals have been suspended as a precaution until the system is confirmed to be safe again. She also noted that the company has a special reserve fund to cover users.
Capital freeze and reactions
In response, representatives of companies issuing digital currencies announced that they had frozen funds worth more than $1,5 billion in an effort to limit the damage, in cooperation with authorities. Changpeng Zhao publicly stated that the situation indeed appears to be an attack, expressing the expectation that users' funds will be fully recovered.
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For its part, the company's separate American subsidiary, known as Binance.us, said it operates independently and that its own customers' funds and services remain safe and operating normally.
Separate security problem at Polymarket
During the same period, the betting platform Polymarket faced a separate security issue, which led to the removal of funds from the accounts of approximately 700 users, totaling $2,7 million.
Polymarket temporarily suspended trading and said the problem was caused by a breach by an external partner that provided it with monitoring services. The company identified as the external partner, DebugBear, confirmed the incident and asked its customers to remove its code from their websites.
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