Circle freezes over $800M in USDC linked to Binance exploit
Security & Exploits ·
The stablecoin issuer blacklisted the funds on-chain after reports surfaced of a security incident at Binance, with law enforcement now involved in the inquiry.
Circle has frozen more than $800 million in USDC connected to a suspected exploit involving Binance, according to a statement posted by Jeremy Allaire on X. The company said it is monitoring reports of the incident and is working alongside law enforcement as the investigation continues.
Separate reporting within the same cluster puts the frozen amount at $823 million, a figure consistent across multiple accounts of the event. The freeze was carried out through Circle's blacklist function, which can bar specific addresses from moving USDC regardless of where the tokens sit on-chain.
On-chain data shows the affected balance was blacklisted on Ethereum mainnet via the USDC minter contract, a mechanism visible on Etherscan. This kind of intervention lets Circle halt transfers of flagged tokens even after they have left the original wallet, effectively freezing the funds in place without needing to reverse any transaction.
A corresponding transaction tied to the incident has also been logged on BlockSec's explorer, offering a record of the on-chain activity associated with the hack. Four distinct sources have now corroborated the core details of the freeze, including the roughly $823 million figure and its link to the Binance incident.
What remains unclear is the precise mechanism of the original exploit, how the funds moved before being flagged, and whether any portion of the frozen USDC will be returned or remain locked pending the outcome of the law enforcement investigation. Circle has not detailed a timeline for resolution.