Circle, the issuer of USDC, is dealing with criticism after blockchain investigator ZachXBT shared an in depth thread referred to as “Welcome to Circle Recordsdata.” Over the previous three years, Circle’s dealing with of USDC has reportedly resulted in losses totaling over $420 million, involving a number of high-profile hacks and thefts.
ZachXBT questioned why Circle didn’t use its energy to freeze stolen USDC sooner.
Case by Case — USDC Compliance Failures
This isn’t a small accusation from a random account. ZachXBT is without doubt one of the most revered on-chain investigators on the earth, and each declare within the thread is backed by verifiable blockchain knowledge.
The Drift Protocol Hack — April 1, 2026
One of the latest instances is the April 2026 Drift Protocol exploit, over $232M USDC was bridged from Solana to Ethereum throughout greater than 100 transactions in six hours. All utilizing Circle’s personal Cross-Chain Switch Protocol, with no motion from Circle.
Safety researcher Specter famous that the attacker intentionally averted changing to Tether throughout the bridging course of, suggesting the hacker was assured Circle wouldn’t freeze the funds.
The Bybit Hack — February 2025
When the Lazarus Group stole $1.5 billion from Bybit, legislation enforcement requested each Tether and Circle to freeze a theft deal with. Tether froze inside hours, whereas Circle reportedly acted 24 hours later.
Radiant Capital Hack – Oct 2024
In October 2024, Radiant Capital was hacked for $58 million by the Lazarus Group. The attacker stole USDC utilizing open approvals and moved throughout a number of blockchains. The funds stayed in hacker wallets for hours, however Circle didn’t freeze them.
Mango Markets Hack – Oct 2022
Equally, in October 2022, Mango Markets was hacked for $110 million. The attacker moved $57.5 million to a Circle deposit deal with on Solana and later transferred the funds to Ethereum. The attacker was ultimately charged by the SEC, however the stolen funds had been by no means frozen on-chain.
The Nomad Bridge Hack — August 2022
Round $45 million in USDC sat in hacker wallets for 30–45 minutes, and the hack was publicly identified. Circle by no means blacklisted the addresses, and the funds had been swapped out.
Why Circle Has Been Delaying in Taking Robust Motion
ZachXBT stated Circle has the instruments to behave sooner, however delays have affected customers, with losses reaching 9 figures. He famous that Circle is just not helpless on this state of affairs
USDC’s token contract features a freeze and blacklist perform, and Circle’s personal phrases of service explicitly state it reserves the appropriate to limit entry for suspected illicit actors “in its sole discretion.”
This implies Circle can freeze stolen USDC with out ready for courtroom orders. However the issue, based on ZachXBT, is that Circle repeatedly selected to not act shortly.
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