Circle and Tether Freeze $1.8 Billion Linked to Potential Binance Hack
· Business · CNBC, NBC News, Reuters
Circle Internet Group and Tether have frozen approximately $1.8 billion in assets potentially tied to a security breach at the cryptocurrency exchange Binance. Circle CEO Jeremy Allaire confirmed the company froze over 800 million in USD Coin, while Tether CEO Paolo Ardoino stated his firm froze more than 1.5 billion of its stablecoin. Binance has not confirmed a specific exploit but stated it is investigating a potential security issue on its platform. Following the news, Bitcoin prices dropped more than 3%, falling below $80,000. Shares of Circle also declined about 5% in off-hours trading.
Why it matters
The move by stablecoin issuers to freeze such a large volume of assets prevents the potential movement of stolen funds and impacts liquidity for users on the Binance platform.
Read the original report — CNBC
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