World Liberty Financial has frozen $27 million in its USD1 stablecoin linked to the transfers out of Binance hot wallets. Chief executive Zach Witkoff said the company took the step proactively.
Witkoff wrote: “USD1 has taken proactive steps to freeze the $27 million in USD1 associated with the @binance hack. We stand by our industry partners. Protecting users and preventing bad actors from moving stolen funds is a shared responsibility.”
Binance co-CEO Yi He thanked the World Liberty Financial team for the freeze and also noted roughly $2 million in the related WLFI token had been frozen. The action sits alongside larger freezes by Tether and Circle. Binance has confirmed a verified total of $2.54 billion frozen so far and has said user funds remain safe while it continues its review.
USD1 is a smaller issuer than USDT or USDC, so the absolute amount is modest relative to the overall outflows. The freeze still shows the same pattern: stablecoin issuers can block balances once addresses are identified, while non-freezable assets such as ether cannot.
Author: Andy Samu
See Also:
Ripple Freezes RLUSD Holdings Linked to Binance Hot Wallet Outflows | Disruption Banking
Binance Hot Wallets Lose $3.5bn in Potential Record Crypto Hack | Disruption Banking
Andrew Samu
Andrew Samu, Editor-at-Large at Disruption Banking, shapes the publication’s global coverage of banking, capital markets and digital assets. Based at London’s Level39, he combines market analysis with a strong commercial perspective, informed in part by his role as Commercial Director at Verita HR.
