Circle Failed To Freeze $420M in Illicit USDC Activity Since 2022
ZachXBT alleges Circle failed to freeze $420M in illicit USDC transactions since 2022, despite having the capability to do so.Summary
Onchain detective ZachXBT claims Circle, the issuer of USDC, has failed to freeze or blacklist approximately $420 million in illicit fund flows since 2022. ZachXBT cites 15 separate cases, including hacks linked to North Korean hackers, where Circle either took minimal action or failed to act, such as the GMX and Cetus DEX hacks. He specifically points to the Drift Protocol Hack where $232 million in illicit flows weren't frozen despite a six-hour window for intervention. ZachXBT emphasizes he's not seeking Circle's collapse but highlights the significant financial losses—potentially exceeding $420 million—resulting from this inaction. Circle had previously frozen USDC funds in response to US sanctions, like those against Tornado Cash, and was exploring reversible transactions to combat fraud, but has not yet responded to the allegations.
(Source：Cointelegraph)