[Binance Hackers Use DeFi Deposit Certificates to Circumvent Stablecoin Freezes, Involving $500,000] Chainalysis has discovered that Binance hackers on the Tron blockchain used deposit certificates (CDs) in DeFi lending protocols to transfer stablecoin redemption rights, thereby circumventing the issuer's freezing measures. The attackers exchanged TRX for stablecoins and deposited them into the lending protocol to obtain deposit certificates. They then transferred the certificates to a new wallet to redeem the stablecoins and exchanged them for ETH via a cross-chain bridge. This method separates the asset claim represented by the deposit certificates from the underlying stablecoin's freeze control. The North Korean TraderTraitor group previously used this method to transfer $500,000. Circle and Tether have assisted in freezing approximately $2.8 billion in related assets.
--
24/7 Flashes
More >Today 2026-10-31