Circle Faces Renewed Criticism from Crypto Security Community
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 1d ago- Asset Freezing Delay: Over $3 million worth of stolen USDC remained unfrozen for more than eight hours at the original theft address linked to SwapNet, raising concerns about whether Circle would act proactively, potentially allowing the stolen funds to be moved or laundered.
- User Protection Concerns: Blockchain investigator ZachXBT labeled Circle a “bad actor,” questioning its user protection measures and suggesting that its failure to respond effectively to theft incidents could undermine user trust and adoption of USDC.
- Strengthening Regulatory Ties: While Circle has pursued closer relationships with regulators and traditional financial institutions to promote USDC across multiple blockchains, critics argue that its slow and inconsistent enforcement may weaken its market position and credibility.
- Competitive Comparison: In contrast to rival Tether, which has frozen approximately $1.6 billion in USDT across over 2,500 addresses, Circle has only managed to freeze about $110 million in USDC across fewer than 500 addresses, highlighting its shortcomings in responding to security incidents and potentially impacting its competitiveness in the stablecoin market.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
