Tether and Circle freeze a combined $1.79 billion in stablecoins
On October 29, 2026, The Block reported based on on-chain data that Tether and Circle had frozen a combined approximately $1.79 billion in stablecoins, and these assets were in unlabeled wallets that had received large amounts of funds from Binance hot wallets. Tether froze approximately $971.1 million in USDT, and Circle froze $823 million in USDC.
The freeze targeted part of the stablecoins that had previously been transferred out of Binance-labeled hot wallets, including Binance 14. Changpeng Zhao (CZ) posted the same day that it looked like a hack on Binance, thanked the above freezes, and said that as a shareholder he expected users' funds to be fully covered. Binance said officially that it was investigating a potential security issue and had not yet confirmed the impact on user funds.
Original sources:
Title: UPDATE: Tether and Circle have frozen a combined $1.79 billion in stablecoins... Publisher: The Block (@TheBlockCo) Date: 2026-10-29 URL: https://x.com/TheBlockCo/status/2115915371991454027 Source type: media report (citing on-chain data) Verification status: full text of the original post was read for this report Supporting content: a combined $1.79 billion frozen, including about $971.1 million in USDT and $823 million in USDC, in unlabeled wallets receiving assets from Binance hot wallets
Title: User funds are safe! It does look like a hack on Binance... Publisher: CZ 🔶 BNB (@cz_binance) Date: 2026-10-29 URL: https://x.com/cz_binance/status/2115915423174853077 Source type: original post by the party involved Verification status: full text of the original post was read for this report Supporting content: CZ said it looks like a hack, thanked Tether and Circle for the freezes, and expected full coverage
Title: Our teams are aware of reports of a potential security issue... Publisher: Binance (@binance) Date: 2026-10-29 URL: https://x.com/binance/status/2115915708504900039 Source type: original post by the party involved Verification status: full text of the original post was read for this report Supporting content: investigating, and the impact on user funds has not yet been confirmed
ABAB AI Insight
Tether and Circle's freezing of stablecoins at the same receiving address is a direct use of the blacklist permissions built into their contracts. Tether has repeatedly frozen allegedly stolen or sanctioned addresses in the past, while Circle typically acts after receiving legal process; this time the two responded almost simultaneously, indicating that the address had already been marked as high-risk by multiple parties.
The freeze cut off further transfer of about $1.79 billion in stablecoins, but only for USDT and USDC themselves. Non-stablecoin assets, such as ETH and other tokens, could still move on-chain. CZ's statement characterized the event as a suspected hack and placed the expected coverage at the shareholder level, which differs in level from Binance's statement that it is investigating and has not yet confirmed any impact.
Stablecoin prices remained near the $1 range, indicating that the secondary market did not experience significant depegging pressure due to this freeze or outflow. Market reaction was mainly reflected in BTC and ETH price volatility and leveraged liquidations, rather than in a breakdown in stablecoin prices themselves.
The indicators to watch are whether Binance releases a formal investigation conclusion, whether the frozen address is further burned or reissued, and the subsequent flow of non-stablecoin assets in the receiving address.
ABAB News · Cognitive Law
Freezing by the issuer cuts off stablecoin transfers, but does not change completed ownership changes of non-stablecoin assets.
A public expectation of coverage by shareholders remains at a different level of confirmation from the operator's investigation conclusion.
After the on-chain blacklist takes effect, there has been no corresponding depegging in secondary-market prices.