Circle and Tether Freeze Some Stablecoins Linked to Bitget Hack, Most Funds Already Moved

WHY IT MATTERS

Stablecoins like USDC and USDT are digital tokens designed to maintain a steady value, usually pegged to the US dollar. Unlike fully decentralized cryptocurrencies, these stablecoins are controlled by companies (Circle and Tether) that have the power to freeze tokens in specific wallets, similar to how a bank can freeze a bank account. When a crypto exchange gets hacked, these companies can try to lock down stolen stablecoins so the thief cannot spend them. However, this incident shows a limitation of that approach: because crypto transactions happen quickly and can be converted into other types of tokens that cannot be frozen in the same way, hackers often move faster than the response. Think of it like a bank freezing a stolen check, but the thief has already cashed it and converted the money into gold before the freeze goes through.