# Freeze Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Freeze", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Crypto Shockwave: Circle Sued As $280 Million Drift Hack Unravels

A class action lawsuit has been filed in a Massachusetts federal court against Circle Internet Financial, alleging the stablecoin issuer was negligent and aided in the theft of $280 million from the Drift Protocol. The plaintiffs, representing over 100 investors, argue Circle had the means to stop the stolen USDC from being moved across blockchains using its Cross-Chain Transfer Protocol but failed to act. They point to Circle's prior action of freezing wallets in a separate civil case as proof it could have intervened. The April 1st hack is attributed to North Korean state-backed actors who moved the funds to Ethereum and laundered them through Tornado Cash. The case raises significant questions about the responsibility of centralized entities in the decentralized crypto ecosystem.

bitcoinist7h ago

Crypto Shockwave: Circle Sued As $280 Million Drift Hack Unravels

bitcoinist7h ago

Nic Carter Says Bitcoin Has 3 Ways To Handle Satoshi’s Coins

Nic Carter, founding partner at Castle Island Ventures, outlines three potential approaches for Bitcoin regarding early coins vulnerable to future quantum computing attacks. He estimates 1.7 million BTC in old pay-to-pubkey outputs could be at risk if quantum computers advance and Bitcoin transitions to post-quantum cryptography. The first option is to freeze non-migrated coins, a move likely supported by institutions and custodians to prevent market destabilization. The second is to leave them untouched, upholding Bitcoin's immutability principle, as favored by ideological purists. Carter's preferred "third way" is a legal salvage process: a U.S. quantum leader, under court authority, would recover the coins into a trust-like structure to return them to rightful owners or hold them neutrally, avoiding protocol-level confiscation. He believes the freeze camp may prevail due to Bitcoin's increased institutional dominance but warns such an action would fundamentally change Bitcoin.

bitcoinist8h ago

Nic Carter Says Bitcoin Has 3 Ways To Handle Satoshi’s Coins

bitcoinist8h ago

Behind the Circle Freeze Controversy: Where Are the Power Boundaries of Dollar Stablecoins?

The recent controversy surrounding Circle's freezing of 16 unrelated business wallets, as publicly criticized by on-chain investigator ZachXBT, has ignited a critical debate about the power and boundaries of centralized dollar stablecoin issuers. This incident, occurring alongside Tether's simultaneous unfreezing of previously blacklisted addresses, highlights a fundamental question: who controls the stablecoins users believe they own? The core issue extends beyond a single error. A mistaken freeze can disrupt entire payment flows, preventing users from moving funds and triggering compliance alarms at exchanges. With USDT and USDC dominating over 82% of the stablecoin market, the reality is that most "on-chain dollars" are centralized, subject to freezing, and can be intervened with by their issuers. This event shifts the industry discussion from technical concerns to questions of power and accountability: Who has the authority to freeze funds? What are the public justifications? How is transparency ensured? And what recourse exists for those wrongly affected? Ultimately, the incident underscores that dollar stablecoins are not unregulated digital cash but financial instruments operating within a gray area of centralized control. As stablecoins become critical infrastructure for global value transfer, the power to freeze assets must itself be constrained and held accountable.

marsbit04/14 10:35

Behind the Circle Freeze Controversy: Where Are the Power Boundaries of Dollar Stablecoins?

marsbit04/14 10:35

Trump’s Crypto Venture Secretly Built A Way To Freeze Your Funds, Investor Claims

A major investor in World Liberty Financial (WLFI), a crypto project connected to Donald Trump, has accused it of secretly building a mechanism to freeze user funds. Tron founder Justin Sun, who invested over $100 million, claims the project has a backdoor in its smart contracts that allows the team to freeze, restrict, or block access to funds without warning. Sun revealed his own wallet was blacklisted in 2025. The allegations coincide with a separate controversy where WLFI used its own tokens as collateral to borrow millions. Blockchain analytics show WLFI deposited nearly 2 billion of its tokens into the Dolomite lending protocol to borrow over $31 million in stablecoins, accounting for 55% of Dolomite's liquidity. The project has reportedly used 5 billion self-issued tokens to obtain around $75 million in outside liquidity, a practice critics compare to circular financing. Amid the accusations, WLFI's token price has fallen more than 20% in a month, dropping below $0.08. A key lending pool is at 93% capacity, making withdrawals difficult. Sun has publicly demanded the project unlock all tokens and operate transparently. WLFI has not yet issued a formal response.

bitcoinist04/13 11:02

Trump’s Crypto Venture Secretly Built A Way To Freeze Your Funds, Investor Claims

bitcoinist04/13 11:02

Circle defends USDC freeze policy after Drift exploit, calls for faster legal frameworks

Circle has responded to criticism regarding its handling of illicit funds, particularly after the Drift Protocol exploit where over $270 million was drained. The company stated that it cannot freeze USDC assets without legal authorization from relevant authorities, emphasizing that freezing is a legal obligation, not a discretionary action. This follows a report alleging $420 million in compliance lapses due to delayed or absent freezes, including $230 million in USDC during the Drift incident. Circle argues that the mismatch between blockchain speed and legal processes creates structural gaps exploited by bad actors. The company calls for updated legal frameworks, such as the GENIUS and CLARITY Acts, to enable faster intervention while preserving due process and property rights.

ambcrypto04/10 15:47

Circle defends USDC freeze policy after Drift exploit, calls for faster legal frameworks

ambcrypto04/10 15:47

‘The Circle USDC Files’: ZachXBT Finds $420M In Suspect Transactions, Weak Oversight

On-chain investigator ZachXBT's report, "The Circle USDC Files," alleges over $420 million in compliance failures by Circle related to its stablecoin USDC since 2022. The report claims Circle repeatedly failed to use its on-chain freezing and blacklist functions to halt stolen funds in high-profile DeFi exploits, despite having the contractual right and technical capability to do so. Notable cases include the April 2026 Drift Protocol hack ($280M) and the January 2026 SwapNet attack ($16M), where Circle allegedly delayed or refused freeze requests from law enforcement and analysts. Compared to other stablecoin issuers, Circle was significantly slower to act, taking months longer to freeze addresses in some instances. ZachXBT argues this pattern of inaction has caused nine-figure losses to the crypto ecosystem.

bitcoinist04/04 11:02

‘The Circle USDC Files’: ZachXBT Finds $420M In Suspect Transactions, Weak Oversight

bitcoinist04/04 11:02

ZachXBT flags $420m in alleged USDC compliance lapses, raising questions over Circle’s enforcement

A report by ZachXBT alleges over $420 million in USDC compliance lapses by Circle since 2022, raising questions about the effectiveness of its enforcement. The report, published on April 3, highlights cases where USDC linked to hacks or illicit activities was not frozen or faced significant delays. Key examples include the $280 million Drift Protocol exploit, where $232 million in USDC was moved without freezing, and historical incidents like the $223 million Cetus Protocol and $110 million Mango Markets exploits. While Circle has compliance tools to freeze funds, the report questions their consistent application, especially in fast-moving, cross-chain scenarios. The findings could pressure stablecoin issuers to prove real-time enforcement as regulators advance oversight frameworks.

ambcrypto04/03 17:02

ZachXBT flags $420m in alleged USDC compliance lapses, raising questions over Circle’s enforcement

ambcrypto04/03 17:02

‘Circle had 6 hours to freeze funds’ – ZachXBT slams CEO after DRIFT hack

In the past 24 hours, Drift Protocol on Solana suffered a $285 million hack, including the theft of Circle’s USDC. Blockchain investigator ZachXBT accused Circle of failing to freeze $230 million in stolen USDC that was bridged from Solana to Ethereum via CCTP, despite having a 6-hour window to act. He criticized Circle and its CEO Jeremy Allaire for incompetence, alleging they use compliance buzzwords without real implementation. The hack impacted 11 protocols, with Ranger Finance losing $900K. Although Solana’s Chief Product Officer called it an isolated incident, the event raised broader DeFi security concerns. Circle’s stock extended its decline, with indicators showing oversold conditions and continued selling pressure.

ambcrypto04/02 12:53

‘Circle had 6 hours to freeze funds’ – ZachXBT slams CEO after DRIFT hack

ambcrypto04/02 12:53

ZachXBT flags USDC freeze – Why 16 exchange wallets were hit

ZachXBT's investigation revealed that USDC issuer Circle froze at least 16 exchange-linked hot wallets on March 23, 2026, disrupting transactions across bridges and settlements. These compliance actions, which extended beyond intended targets, raised concerns about systemic reliability and targeting accuracy. The number of blacklisted USDC addresses has grown to 596, reflecting deeper regulatory integration. This has shifted USDC's role from neutral infrastructure to a controlled settlement layer. Consequently, USDC outflows declined 0.9% weekly, with liquidity rotating toward USDT, which now holds 58.29% dominance. The incident exposed centralized control risks, fragmenting trust and reshaping stablecoin capital allocation.

ambcrypto03/26 22:47

ZachXBT flags USDC freeze – Why 16 exchange wallets were hit

ambcrypto03/26 22:47

Bitcoin Heist At Home: Wife Uses CCTV To Pocket $176 Million

A domestic dispute in the UK High Court involves a man, Ping Fai Yuen, accusing his estranged wife, Fun Yung Li, of stealing Bitcoin worth approximately $176 million. He claims she secretly recorded the 24-word recovery phrase to his hardware wallet and transferred the funds into 71 separate wallets to complicate tracing. CCTV and audio devices allegedly captured discussions about moving the money discreetly. Li was arrested and released on bail, but police have taken no further action without new evidence. The court sees a strong case and has moved to freeze related assets, noting the risk of cross-jurisdictional transfers. The case may set a legal precedent for applying traditional property laws to cryptocurrency theft.

bitcoinist03/17 17:02

Bitcoin Heist At Home: Wife Uses CCTV To Pocket $176 Million

bitcoinist03/17 17:02