ZachXBT Says Circle Did Not Freeze Funds in Exploits Exceeding $420 Million
The blockchain investigator said Circle failed to freeze roughly $420 million in allegedly illicit USDC since 2022, citing the Drift hack and rapid fund movements across more than 100 transfers.
USDC
Summary
Blockchain investigator ZachXBT said on the 3rd that Circle failed to freeze about $420 million in allegedly illicit USDC tied to exploits since 2022. He specifically cited the Drift hack, where $230 million in USDC was allegedly laundered through more than 100 transfers within six hours. The updated claim adds a concrete example and transaction pattern to earlier criticism that Circle was slower to act in some exploit-related cases.
Terms & Concepts
- USDC: A U.S. dollar-pegged stablecoin issued by Circle that is widely used for trading, payments, and on-chain transfers.
- Freeze funds: A compliance action in which an issuer or platform blocks the movement of specific assets, often after hacks or sanctions-related concerns.
- Blockchain investigator: An analyst who traces on-chain transactions to identify wallets, fund flows, and activity linked to exploits or illicit transfers.