BitGo froze USD1 tokens held at a blockchain address linked to stolen funds, while saying it had found no security vulnerability in its systems. The temporary freeze targets a single flagged address and falls within USD1’s compliance framework, which involves World Liberty Financial and BitGo. USD1’s smart contracts allow authorized parties to block addresses and, on certain chains, to drain or reallocate frozen balances. By mid-October 2026, USD1’s supply had fallen by roughly $400 million, or 9%, to about $4 billion as redemptions increased. World Liberty Financial is also preparing to take over USD1 issuance and custody through its planned World Liberty Trust Company, which received conditional preliminary approval from the OCC.
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