ZachXBT reports over $440M in losses tied to Circle’s compliance gaps since 2022
Blockchain investigator ZachXBT alleges that Circle failed to freeze over $440 million in stolen USDC across fifteen major DeFi exploits since 2022.Summary
Blockchain investigator ZachXBT has released a report titled “The Circle Files,” alleging that Circle, the issuer of USDC, has failed to act effectively against illicit fund flows. The investigation highlights fifteen incidents since 2022, including the Drift Protocol and Mango Markets exploits, where hundreds of millions of dollars in stolen USDC were not frozen in a timely manner. While Circle markets itself as a highly regulated and compliant stablecoin issuer, ZachXBT argues that the company’s slow response times—contrasted with Tether’s faster actions in similar scenarios—undermine its reputation for safety. This report raises significant concerns regarding counterparty risk for institutional investors and DeFi protocols that rely on Circle’s perceived regulatory superiority, potentially impacting the company’s future IPO prospects and market standing.
(Source：Crypto Briefing)