Circle and Tether step in to freeze hacker wallet after massive Bitget crypto heist
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Circle and Tether froze a wallet involved in the $351.6 million Bitget hack, locking about $318,000 in stablecoins including USDT and USDC. The wallet, labeled "Bitget Exploiter 8," was blacklisted by Circle and banned by Tether, while other exploiter wallets still hold over 63,000 ETH that cannot be frozen. Bitget CEO Gracy Chen explained the hack involved backend system compromise rather than private key theft and that the exchange's user protection fund will cover losses.
Why it matters
The source highlights the significance of Circle's quicker intervention compared to its slower response during the $285 million Drift hack earlier in the year. This suggests increased vigilance by stablecoin issuers in freezing stolen funds. The broader impact on market confidence or regulatory implications is not directly addressed in the text.
Key context
The Bitget hack occurred on September 24, 2026, exploiting the exchange's backend systems and spoofing transactions rather than compromising private keys. Circle previously faced criticism for delayed action following the Drift hack, where $232 million in stolen USDC moved unchecked across blockchains. Stablecoin issuers like Circle and Tether can blacklist addresses to freeze stablecoins but cannot freeze native cryptocurrency like ETH.
Key numbers and entities
The hack totaled $351.6 million, with about $318,000 stablecoins frozen in the exploiter's wallet holding 170.47 ETH, 218,023 USDT, and 99,990 USDC. Other exploiter wallets hold more than 63,000 ETH. Bitget CEO is Gracy Chen. Blockchain security firm MistTrack confirmed the freeze and ban actions. The Bitget user protection fund holds over $464 million.
What remains unclear
The whereabouts or risks associated with the unfrozen 63,000 ETH held by the hackers are not detailed. There is no information on whether additional measures are planned to recover more stolen funds or the longer-term impact on Bitget users. Details on the specific legal basis or conditions triggering stablecoin freezes remain unstated.