Binance pauses account flows during the investigation
Binance has temporarily suspended all deposits and withdrawals while its security teams investigate the suspected hot-wallet hack.
The exchange says the pause is a precautionary security measure while it performs checks, traces and freezes affected assets, and works with law enforcement and industry partners. Binance says withdrawals will resume once the security issue is fully resolved and repeats that user funds remain safe.
Andy reported the withdrawal freeze shortly after Binance's latest communication. The important change is that the operating restriction is now supported by Binance-linked and official reporting rather than only user observations.
Binance pledges to cover the losses
Binance co-founder Yi He says “Binance will cover all hacking losses.” That is stronger than the exchange's first statement, which acknowledged a potential security issue without explicitly describing the event as a hack.
The pledge is consistent with CZ's earlier statement that the loss may be higher than a circulating estimate but “will cover.” Binance has not yet said whether customer protection will be funded through corporate reserves, the SAFU emergency fund, recovered assets, insurance or another arrangement.
The verified freeze total reaches $2.54 billion
Binance says the current verified total of frozen assets is $2.54 billion and that the figure may increase as issuers, blockchain-intelligence firms and law enforcement trace additional funds.
That total is narrower than the approximately $5.60 billion gross drain estimated by Hyperdash and other on-chain analysts. The two numbers measure different things: $2.54 billion is Binance's reported verified freeze total, while $5.60 billion is an attributed estimate of assets moved across several chains.
Frozen assets are immobilized, not automatically recovered. Issuers and Binance still need to complete any burn, reissuance, redemption or legal recovery process before the value can be treated as returned.
What users can and cannot do
While the suspension remains active, users may be unable to deposit or withdraw through Binance even if balances remain visible. The pause does not by itself mean that individual customer accounts were compromised.
Users should not follow unofficial “withdrawal restoration,” “refund” or “wallet verification” links. Binance says verified updates will appear through its official channels. No legitimate recovery process requires a customer to disclose a password, seed phrase, private key or two-factor authentication code.
What remains unknown
Binance still has not published:
- the final gross amount transferred without authorization;
- the complete affected-wallet inventory;
- the confirmed attack vector;
- the amount recovered rather than merely frozen;
- the final net loss;
- or a timetable for restoring deposits and withdrawals.
The current status is therefore precise: Binance has suspended deposits and withdrawals, reports $2.54 billion frozen, pledges to cover hacking losses and says users remain safe. The final scale and technical cause are still under investigation.
This is a developing story. Signal21 will update the incident timeline when Binance restores service or publishes its post-mortem.