Circle, Tether freeze small share of Bitget hack proceeds
Stablecoin issuers have blocked a wallet tied to the $351.6 million Bitget hack, trapping about $318,000 in USDT and USDC after the theft. Most of the stolen assets remain beyond issuer control because other linked wallets still hold more than 63,000 ETH that cannot be frozen.
Highlights
- Circle and Tether froze approximately $318,000 in USDT and USDC linked to the Bitget hack, representing a small portion of stolen funds.
- Attackers exploited Bitget's wallet infrastructure by spoofing transaction data, but the exchange's $464 million user protection fund reportedly covers the loss.
- Circle's swift asset freeze contrasts with its slower response during the April Drift hack, highlighting increased scrutiny and procedural limits for stablecoin issuers.
Wallet freeze covers limited portion
As reported by CoinDesk, onchain data shows Circle blacklisted the address labeled "Bitget Exploiter 8" on Etherscan at 05:00 UTC on Friday, while blockchain security firm MistTrack said Tether later banned the same wallet. The address holds about 170.47 ETH, 218,023 USDT and 99,990 USDC.The action leaves roughly $318,000 in stablecoins immobilized, but it affects only a small share of the funds taken in Thursday's attack. MistTrack's tracker shows other exploiter addresses still hold more than 63,000 ETH, a balance that no token issuer can freeze.
Exchange response and broader crypto implications
Bitget CEO Gracy Chen said attackers compromised a backend system in the exchange's wallet infrastructure, spoofed transaction data and triggered its authorization process to move funds out. She said the incident did not involve a private key compromise, and added that Bitget's user protection fund, which holds more than $464 million, covers the loss.Circle's response is drawing attention because it comes faster than in April's Drift hack, when critics said the company allowed about $232 million in stolen USDC to move across chains without intervening quickly enough. Circle has said it freezes assets when legally required, highlighting the limits and scrutiny facing stablecoin issuers when large crypto thefts spill across multiple tokens and networks.
Our earlier article on the $84 million Capstone account freeze explained how U.S. prosecutors targeted payment channels allegedly used to move funds for crypto-linked clients, widening scrutiny of fiat on- and off-ramps. We also noted how the case highlighted ongoing challenges for stablecoin players such as Tether and Bitfinex in maintaining reliable banking access, and how enforcement actions can quickly disrupt liquidity and payments flows.
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