Circle took no action during Drift Protocol attack, says investigator
An investigator claims Circle failed to freeze stolen funds during the Drift Protocol attack, despite having the ability to do so.Summary
Blockchain investigator ZachXBT accuses Circle, the issuer of USDC, of inaction during the $280 million Drift Protocol exploit. The attacker bridged stolen USDC through Circle’s Cross-Chain Transfer Protocol (CCTP) over six hours, with over $230 million transferred without intervention. Circle has previously frozen funds, demonstrating the technical capability to do so, leading to criticism that its actions are selectively applied. This incident raises concerns about the centralization risks of stablecoins like USDC, as Circle possesses a 'kill switch' but chose not to use it, potentially impacting institutional investors and regulatory discussions. The lack of intervention is particularly notable given Circle’s recent blacklisting of other wallets. The event may also benefit decentralized stablecoin alternatives and poses a significant challenge to Drift Protocol’s recovery.
(Source：Crypto Briefing)