Binance Investigates Security Issue as Stablecoin Issuers Freeze Funds
· Business · The Independent, BBC News, Al Jazeera
Binance is investigating a potential security issue after founder Changpeng Zhao stated the incident resembles a platform hack. Stablecoin issuers Tether and Circle responded by freezing millions of dollars in associated funds on Thursday evening. Circle CEO Jeremy Allaire confirmed freezing the equivalent of more than $800 million, while Tether CEO Paolo Ardoino stated his firm froze over $1.5 billion. Following the news, the price of Bitcoin dropped 3.2% to trade under $79,000. Binance representatives assured users that all customer funds remain completely safe while security teams review the incident.
Why it matters
The freezing of over $2.3 billion in stablecoins by Tether and Circle prevents potential exploitation and triggers a sharp drop in cryptocurrency prices.
Read the original report — The Independent
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