Binance, the world's largest cryptocurrency exchange, is investigating a suspected hack that reportedly drained billions in digital assets from its hot wallets on Thursday. The exchange confirmed it is aware of reports of a potential security issue and is actively investigating.

On-chain data showed large transfers from Binance-linked wallets beginning around 4:24 p.m. ET, with estimates of unconfirmed total outflows ranging from $5.57 billion to $5.8 billion across Ethereum, Bitcoin, and Tron networks. Analysts tracking the activity identified a primary receiving wallet holding substantial amounts of Bitcoin, Ether, USDT, and USDC.

Tether froze more than $1.56 billion in USDT linked to the incident, while Circle froze approximately $800 million in USDC. Binance co-founder, Changpeng Zhao, stated that the activity appeared to be a hack and that he expects user funds to be fully covered.

In an official statement posted on X, Binance said they are "working non-stop to resolve this issue" and that they "will cover all losses." All deposits and withdrawals were suspended as a precaution until the incident is resolved.

Binance confirmed the total frozen amount in a later post, writing the current total was "around $3 billion" as of late on Thursday evening. The exchange has not confirmed any impact to customer balances and maintains that user funds remain safe. It noted the existence of an emergency fund to address potential losses.

This incident marks what could become the largest crypto theft on record, surpassing previous major exploits. Crypto markets reacted quickly with Bitcoin prices falling amid the news breaking.

Binance said it will provide updates as verified information is available. The identity of those behind the suspected breach is not yet known.