Stablecoin issuers froze $3 billion of the Binance theft
About $3 billion of the $6.3 billion theft has been frozen, and the rest has not been frozen.
WSJ What's News · The AI Trade Gets SpookyAbout $3 billion of the $6.3 billion taken from Binance is stuck. The companies behind the stolen stablecoins stopped those coins from being sent on.
Most crypto has no central owner to block a transfer. Stablecoins are different. Coins like Tether and Circle's USDC are issued by companies that can stop the funds from being moved on. That block leaves roughly half the Binance loot stuck.
Binance suspended transactions after the theft. Binance's founder said user funds are safe, and the exchange said its U.S. arm was not affected.
Researchers have linked the theft to North Korea's Trader Trader group, in part because part of the haul was mixed with proceeds from an earlier theft tied to North Korea.
Crypto exchanges have faced thefts for years, with a rise in large thefts tied to North Korean state backed groups in the last year or two.
Questions people ask
How does a stablecoin freeze work?
Stablecoins like Tether and USDC are issued by companies. Those companies can stop the funds from being moved on. Bitcoin and similar coins have no issuer, so they cannot be stopped the same way.
Can all stolen crypto be frozen this way?
No. Only coins with an issuer that has that power can be stopped. That is why about $3 billion of the $6.3 billion was frozen.