🚨JUST IN: ZachXBT drops the Circle $USDC Files alleging $420M+ in compliance failures by Circle since 2022.
The on-chain sleuth claims Circle repeatedly took minimal or delayed action on illicit funds across 15+ major cases even when they had clear evidence, law enforcement requests, and the technical ability to instantly blacklist or freeze wallets.
Why this happened?
ZachXBT highlights that despite having advanced freeze tools and operating as a regulated U.S. company, Circle often acted hours (or even days) too late or sometimes not at all.
Hackers took advantage of this gap moving hundreds of millions through Circle’s own CCTP bridge (including $232M in just 6 hours during the recent $285M Drift Protocol exploit).
Funds linked to DPRK / Lazarus Group actors and other major thefts reportedly slipped through while Tether acted faster in similar situations.
The result?
Over $420 million in stolen USDC was laundered instead of being stopped.
ZachXBT asks👇🏻
Who is Circle actually serving?