Binance and Polymarket are investigating potential hacks. The former says it's frozen around $3 billion.

Binance and Polymarket are investigating potential hacks. The former says it's frozen around $3 billion. By Katherine Li You're currently following this author!

Click to unsubscribe from email alerts. and Kelsey Vlamis You're currently following this author! Click to unsubscribe from email alerts. Binance is investigating a potential hack that could result in billions of dollars in losses.

Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images Two major trading platforms — Binance and Polymarket — were investigating security incidents on Thursday, with the former facing potential losses in the billions. There's no evidence the incidents were related. Binance, the world’s largest cryptocurrency exchange by trading volume, said it was actively investigating reports of a "potential security issue." As of Thursday evening, the company said it had frozen around $3 billion on the platform.

"Binance will cover all losses," Binance said in an update on X. "As a precaution, all deposits and withdrawals are temporarily suspended while our team conducts security checks, freezes funds, and works with law enforcement." The company did not respond to a request for comment. Binance founder and former CEO, Changpeng Zhao , said on X a hack seemed likely.

“User funds are safe! It does look like a hack on Binance,” Zhao wrote in a post on X. “I don't manage Binance anymore, but as a shareholder, I expect all user funds will be fully covered.” Zhao expressed appreciation to Tether and Circle , issuers of cryptocurrencies traded on Binance, for quickly freezing funds.

Tether CEO Paolo Ardoino said on X the company froze more than $1.5 billion related to the potential Binance hack. Circle CEO Jeremy Allaire said the company froze over $800 million in connection with the incident and that it was coordinating with law enforcement. Polymarket also reported a security incident Also on Thursday, Polymarket, the world's largest prediction market by trading volume, temporarily halted trading after users reported unauthorized withdrawals.

The company said in a statement on X that one of its third-party providers was compromised and that the incident had been referred to law enforcement. It also said trading had resumed by 3 p.m. Eastern time.

A Polymarket spokesperson told Business Insider that the malicious activity occurred in the UK and that the company will reimburse affected users. The company was unable to confirm the amount that may have been stolen. Polymarket's US exchange was not halted and did not appear to be affected.

A person familiar with the matter attributed the Polymarket hack to a compromised third-party provider called DebugBear, a web performance monitoring platform designed to help businesses optimize website speed. It's unclear exactly how Polymarket uses the platform. DebugBear did not respond to a request for comment.

The company said in an X post on Thursday that it was aware of a security incident and was treating it as a "top priority." Read next Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Katherine Li You're currently following this author! Click to unsubscribe from email alerts. Katherine Li is a reporter on Business Insider's West Coast business news team.

She covers career, the future of work, and how AI is changing hiring practices and workplace trends. Previously, she was a newsroom fellow who wrote international breaking news and produced newsletters for Semafor. Before that, she wrote about climate policies for The Lever, covered the AAPI community for the SF Chronicle as a freelancer, and wrote about the 2019 Hong Kong protests as an intern for The New York Times.

She is an alumna of the Graduate School of Journalism at UC Berkeley and a graduate of the international journalism program at Hong Kong Baptist University with minors in French and English literature. Email Katherine at katherineli@insider.com and follow her on Bluesky @ katherineli.bsky.social . Kelsey Vlamis You're currently following this author!

Click to unsubscribe from email alerts. Kelsey Vlamis is a senior reporter for Business Insider, where she covers business and tech news. She also writes business stories about travel, luxury, and culture.

Previously, she covered the environment, outdoors, and indigenous issues. Her feature story "Disaster at 18,200 feet" received awards from the New York Press Club and the North American Travel Journalists Association , as well as honorable mention from the Society of American Travel Writers . She has also received an American Journalism Online Award for her coverage on missing and murdered Indigenous people in Wyoming.

She's appeared on CBS, NPR, NBC, and other outlets to discuss her reporting. She previously worked on the world news desk at the BBC in London and received a master's in journalism from Northwestern University. She can be reached by email at kvlamis@businessinsider.com or via the encrypted-messaging app Signal at kelseyv.21.

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Source: Business Insider