USD1 says it has frozen about $27 million in funds related to the Binance incident
World Liberty Financial co-founder and CEO Zach Witkoff said in a post on his X account on October 29, 2026, that USD1 has proactively taken steps to freeze about $27 million in USD1 related to the Binance security incident. He said that protecting users and preventing bad actors from transferring stolen funds is a shared responsibility across the industry.
Binance co-founder Changpeng Zhao then quoted the post and replied, “Thank you.” On-chain observations show that the assets transferred from a Binance hot wallet included about 27.76 million USD1. Previously, Tether and Circle had each frozen large amounts of USDT and USDC.
Original source:
Title: USD1 has taken proactive steps to freeze the $27 million in USD1 associated with the @binance hack... Publisher: Zach Witkoff (@ZachWitkoff) Publication date: 2026-10-29 URL: https://x.com/ZachWitkoff/status/2115930660166860922 Nature of source: original post by a stablecoin project executive Verification status: the full post text and CZ’s quoted reply were actually read in this instance (2026-10-29) Supporting content: the core statement that USD1 proactively froze about $27 million in funds related to the Binance incident
ABAB AI Insight
USD1 is issued by World Liberty Financial and has the address-freezing functionality common to stablecoins. This freeze targets holdings specifically identified as related to the Binance incident, rather than a network-wide suspension. The action, alongside Tether and Circle freezing USDT and USDC, shows multiple stablecoin issuers imposing restrictions on freezable assets in the same incident.
After the freeze, the related USD1 can no longer be transferred, but the assets are not automatically returned or confirmed to belong to any party. Binance is still investigating the scope of the incident and has said user funds are safe. CZ publicly thanked the parties involved for the freeze as a shareholder.
Key observations are whether the specific USD1 freeze addresses are disclosed, how the related funds are handled afterward, and Binance’s further explanation of the overall losses and user protections.
ABAB News · Law of Cognition
Issuers of freezable stablecoins can impose restrictions on specific addresses during security incidents, but the freeze itself does not resolve the final ownership of the assets.
When multiple stablecoin issuers each freeze the corresponding assets in the same incident, the scope of the restrictions depends on each issuer’s technical capability and response speed.