Circle under fire after $285 million Drift hack over inaction to freeze stolen USDC
CoinDesk
Circle faces criticism for not freezing stolen USDC following a $285 million exploit of the Drift protocol, highlighting complex legal and regulatory challenges.Summary
Following a $285 million hack of the Drift protocol, Circle is facing backlash for failing to freeze stolen USDC assets. Critics, including blockchain investigator ZachXBT, argue that Circle had the capability to intervene but failed to act, potentially allowing the attacker to move funds across chains. Circle maintains that it operates as a regulated entity and only freezes assets when mandated by law enforcement or court orders to protect user rights and privacy. Industry experts note that this situation highlights a 'gray zone' where stablecoin issuers face a difficult trade-off between preventing illicit activity and avoiding legal liability for acting without formal authorization.
(Source：CoinDesk)