Circle and Tether Freeze Hacker Wallets After Major Bitget Exchange Hack
(7 days ago) · 1 source · Summarized by CryptoBipto — how we make this
Following a large-scale hack of the cryptocurrency exchange Bitget, stablecoin issuers Circle and Tether reportedly froze wallets associated with the attacker. The move was intended to prevent the hacker from moving or cashing out stolen funds held in USDC and USDT stablecoins.
WHY IT MATTERS
Stablecoins like USDC and USDT are cryptocurrencies designed to maintain a steady value, usually pegged to the US dollar. They are among the most widely used tokens in crypto. What many newcomers may not realize is that the companies behind these stablecoins have the power to freeze tokens in any wallet, somewhat like how a bank can freeze a bank account. In this case, that power was used to stop a hacker from spending stolen funds. Think of it like a credit card company blocking a stolen card. This is useful for fighting theft, but it also means these tokens are not fully outside anyone's control, which is different from how many people think of cryptocurrency.
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