BitGo freezes USD1 at address linked to stolen funds

The stablecoin's issuer says it found no security issue and is locking tokens at an address tied to stolen funds BitGo has frozen USD1 tokens held at a blockchain address linked to stolen funds. The custodian also said it found no security issue on its end. What BitGo actually did BitGo is the exclusive issuer and reserve custodian for USD1, the stablecoin tied to World Liberty Financial (WLFI). The freeze targets tokens at a single flagged address connected to stolen assets. The action is described as temporary. That leaves room for the tokens to be released or otherwise handled later. The split in responsibilities is worth spelling out. WLFI owns the USD1 brand and manages compliance actions. BitGo handles issuance and holds the reserves backing the token. USD1’s smart contracts were built with this exact scenario in mind. The code lets authorized parties freeze an address. On certain chains, it also allows frozen balances to be drained or reallocated at BitGo’s discretion. The move fits USD1’s existing compliance framework, which includes provisions for blocking addresses for legal or risk reasons. A short history of USD1 freezes Freezes have not been a regular feature of USD1’s...