Blockchain sleuth ZachXBT accuses Circle of slow USDC freezes across more than $420 million in ‘illicit funds’
ZachXBT criticizes Circle for delayed USDC freezes in cases involving over $420 million in potentially illicit funds, questioning their compliance claims.Summary
Crypto investigator ZachXBT has accused Circle, the issuer of USDC, of being slow to freeze funds linked to illegal activities. In a detailed thread, ZachXBT cited 15 cases totaling over $420 million, including the recent $280 million Drift Protocol exploit, allegedly linked to North Korea. He argues that Circle markets USDC as a safer, more regulated alternative to USDT, but their response time in freezing illicit funds is inadequate. Circle responded stating they freeze assets when legally required and emphasized the need for broader security coordination within the digital asset ecosystem. ZachXBT maintains that Circle has the resources to improve and owes it to users to do so, noting the actual amount of unfrozen illicit funds is likely much higher than reported.
(Source：The Block)