- Circle explained why it did not freeze funds after the Drift Protocol hack.
- According to the statement, USDC is frozen only if required by law.
USDC stablecoin issuer finally answered To critics who accused the company of inaction during the hack of the Drift Protocol decentralized exchange, Circle stated that its status as a regulated organization requires it to freeze assets only if required to do so by law enforcement agencies and other higher authorities.
When Circle freezes USDC, it’s not because we unilaterally or arbitrarily decided that someone’s assets should be confiscated. It’s because the law requires it. stated in company.
It turns out that the issuer freezes USDC only when required by law. The grounds for such measures include sanctions orders, law enforcement requests, court orders, and legal requirements. From this perspective, pressure from social media and public outcry are not considered grounds for restrictions.
This isn’t a backdoor. This isn’t algorithmic surveillance. This is what the rule of law looks like in the context of online financial activity. Wrote in Circle.
In the April article Happy Coin News writtenDrift Protocol, a DEX exchange, was the victim of a security breach that resulted in the loss of approximately $285 million. According to cybersecurity experts at PeckShieldAlert, the incident affected more than 50% of the exchange’s assets. It was later revealed that the Drift Protocol team is working to recover the stolen funds. contacted with the owner of the wallet where the stolen funds are stored.
What happened to me made me Block- detective Zach XBT analyze Circle’s behavior in other hacks, and it has concluded, that the organization itself violates its own rules for using stablecoins. According to his research, even with information from law enforcement, stolen USDC remained in hackers’ wallets for weeks, and sometimes months.
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