USDC issuer Circle is facing criticism after blockchain researcher ZachXBT shared a detailed thread called “Welcome to Circle Files.” Over the past three years, the department has dealt with US dollars It reportedly led to losses totaling more than $420 million, including several high-profile hacks and thefts.
ZachXBT wondered why Circle didn’t use its authority to freeze stolen USDC sooner.
Case by case — USDC compliance failure
This is no small accusation from a random account. ZachXBT is one of the most respected verifiers in the world, and every claim in the thread is backed by verifiable blockchain data.
- Drift Protocol Hack – April 1, 2026
One of the latest cases is April 2026 Exploiting protocol driftmore than $232 million USDC was transferred from Solana to Ethereum via more than 100 transactions in six hours. All using Circle’s cross-chain transfer protocol, without any action from Circle.
Security researcher Specter noted that the attacker intentionally avoided transferring to Tether during the bridging process, suggesting that the hacker was confident Circle would not freeze the funds.
- Bybit hack – February 2025
When the Lazarus Group stole $1.5 billion from… Bybitlaw enforcement authorities asked both Tether and Circle to freeze the theft address. Tether froze within hours, while Circle reportedly acted after 24 hours.
- Radiant Capital Hack – October 2024
In October 2024, it was Radiant Capital Hacked For $58 million by Lazarus Group. The attacker stole USDC using open consents and moved across multiple blockchains. The money remained in the hackers’ wallets for hours, but Circle did not freeze it.
- Mango Market Penetration – October 2022
Likewise, in October 2022, Mango Markets was hacked for $110 million. The attacker transferred $57.5 million to a Circle deposit address on Solana and then transferred the funds to Ethereum. The attacker was eventually charged by the SEC, but the stolen funds were never frozen on-chain.
- Nomad Bridge hack – August 2022
About $45 million sat in USDC hacker Conservative for 30-45 minutes, the hack was publicly known. Circle never blacklisted the addresses, and the money was exchanged.
Why was the department late in taking strong measures?
ZachXBT said circle It has the tools to work faster, but delays have affected users, with losses reaching nine figures. He pointed out that the department is not helpless in this situation
USDC’s token contract includes freeze and blacklist functionality, and Circle’s terms of service explicitly state that it reserves the right to restrict access by suspected illicit actors “in its sole discretion.”
This means Circle can freeze stolen USDC without waiting for court orders. But the problem, according to ZachXBT, is that Circle has repeatedly chosen not to act quickly.
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