- Circle is facing criticism for its slow response to freeze USDC from the Bybit hack.
- The hackers managed to wash more than $400 million this past week.
Circle CEO Jeremy Allaire is being criticised for allegedly delaying freezing USDC stablecoins linked to the $1.5 billion Bybit hack.
Blockchain investigator ZachXBT called out Circle for taking over 24 hours to blacklist an address tied to the North Korean-affiliated hackers, while Tether had frozen USDT linked to the exploit within hours.
“How hard is it to do the right thing as a leading centralized stablecoin issuer?” ZachXBT posted on X, arguing that Circle’s reluctance to act swiftly on clear-cut cases of stolen funds is an ongoing issue.
He cited multiple past incidents where Circle allegedly failed to freeze illicit funds, including the Mango Markets exploit and the Remitano hack.
“How many more examples will people have to show until the space understands Circle is a bad actor?” ZachXBT wrote.
Allaire fired back, calling ZachXBT’s claims “not accurate at all” and defending Circle’s policy of responding only to direct law enforcement requests.
“I don’t think the market or users benefit if a private company makes their own judgements to seize funds without a direct law enforcement request,” he wrote.
Critics argue that Circle’s policy allows bad actors more time to move funds, particularly in cases like the Bybit hack, where North Korea’s TraderTraitor group has been laundering stolen Ethereum at an “unprecedented rate.”
In the past week alone, the hackers have washed more than $400 million, overwhelming investigators and crypto forensic firms.
Recovery prospects are looking grim. Security researchers estimate less than 1% of the stolen crypto may be clawed back.
Crypto market movers
- Bitcoin has gained 0.8% over the past 24 hours and is trading at $85,770.
- Ethereum is down 1% in the same period to $2,210.
What we’re reading
- Trump’s first crypto summit comes on the heels of $1 trillion market rout ― DL News
- Is alt season cancelled? ― Milk Road
- How the Bybit Hack Reveals an Industry Still Striving for Transparency ― Unchained
- BlackRock says new Bitcoin ETF allocation to win investors with ‘higher risk budget’ ― DL News
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
