Circle ($CRCL) freezes $1.1 billion USDC, responds to Binance incident

Circle ($CRCL) froze $1.1 billion in USDC tied to the Binance incident, blocking USDC transfers to and from affected addresses without halting movement of other assets at those addresses. The stablecoin issuer said in a December 5 statement that it acted in coordination with law enforcement, while leaving ownership, criminal liability and forfeiture determinations to investigators and courts. The figure exceeds the roughly $825 million that TRM Labs recorded in its initial analysis and earlier reports of more than $800 million. The move matters because it marks one of the largest stablecoin freezes tied to an exchange-related case and highlights Circle’s growing role as a compliance gatekeeper for on-chain funds. What to watch next is whether courts authorize seizure or return of the frozen USDC, and whether TRM Labs and other analysts revise their tallies as the investigation develops.