Circle freezes US$ 1,1 billion in USDC after Binance attack
📋 Summary
Circle froze around US$ 1,1 billion in USDC associated with the attack involving more than US$ 6 billion against Binance. The issuer says it acted in coordination with authorities and advocates for faster global mechanisms to curb the laundering of stolen assets without trampling due process.
Circle froze approximately US$ 1,1 billion in USDC associated with the attack against Binance, according to a statement published by the stablecoin issuer itself this Thursday (5). The measure was taken in coordination with authorities and represents one of the largest interventions disclosed by a stablecoin company following an attack on the crypto sector.
The incident involving the world's largest exchange involved more than US$ 6 billion in digital assets. Circle said the investigation is ongoing and cited the FBI's attribution of the case to actors linked to North Korea. The company, however, avoided treating that assessment as a definitive conclusion and focused its message on the need for an international response capable of keeping pace with the speed of on-chain transactions.
Freezing prevents transfers, but does not determine what happens next
In its official statement, Circle explained that the freeze prevents USDC from entering or leaving the addresses affected by the measure. The company emphasized that it does not decide who owns the funds, whether a crime occurred, or whether the assets should be confiscated. Those decisions are up to the authorities and the courts.
The distinction is important because centralized stablecoin contracts allow balances at specific addresses to be blocked. This feature creates an opportunity to stop the circulation of stolen funds, but it also concentrates operational power in the issuer. In Circle's case, the company says it acts only in response to valid legal process and keeps the stages of freezing, investigation, and any eventual permanent forfeiture of the assets separate.
📋 Summary
Circle froze around US$ 1,1 billion in USDC associated with the attack involving more than US$ 6 billion against Binance. The issuer says it acted in coordination with authorities and advocates for faster global mechanisms to curb the laundering of stolen assets without trampling due process.
Circle froze approximately US$ 1,1 billion in USDC associated with the attack against Binance, according to a statement published by the stablecoin issuer itself this Thursday (5). The measure was taken in coordination with authorities and represents one of the largest interventions disclosed by a stablecoin company following an attack on the crypto sector.
The incident involving the world's largest exchange involved more than US$ 6 billion in digital assets. Circle said the investigation is ongoing and cited the FBI's attribution of the case to actors linked to North Korea. The company, however, avoided treating that assessment as a definitive conclusion and focused its message on the need for an international response capable of keeping pace with the speed of on-chain transactions.
Freezing prevents transfers, but does not determine what happens next
In its official statement, Circle explained that the freeze prevents USDC from entering or leaving the addresses affected by the measure. The company emphasized that it does not decide who owns the funds, whether a crime occurred, or whether the assets should be confiscated. Those decisions are up to the authorities and the courts.
The distinction is important because centralized stablecoin contracts allow balances at specific addresses to be blocked. This feature creates an opportunity to stop the circulation of stolen funds, but it also concentrates operational power in the issuer. In Circle's case, the company says it acts only in response to valid legal process and keeps the stages of freezing, investigation, and any eventual permanent forfeiture of the assets separate.