- The recent hack of the Drift Protocol platform has prompted Block- detective Zach XBT to draw attention to the inaction of USDC stablecoin issuer Circle.
- He estimated around $420 million in stablecoins in major hacks and thefts alone, but the real amount is much higher.
- Circle’s competitor Tether responds more quickly to law enforcement requests and crypto projects’ demands.
On-chain detective Zach XBT claims that Circle has not frozen or blacklisted approximately $420 million in illicitly obtained stablecoins since 2022.
Circle creates good products, and I hold USDC myself. I don’t expect them to go bankrupt,” the expert said.
The stablecoin issuer had every opportunity to block illicit transactions related to fraud or hacking. According to ZackXBT, Circle failed to freeze the $9 million in USDC stolen in the July 2025 hack of the GMX DEX exchange, nor did it blacklist wallets associated with the $200 million hack of the Cetus DEX in May 2025.
Among the latest cases are: platform hacking Drift Protocol this week. And again, it states Zach XBTCircle failed to freeze $232 million, even though hackers converted USDC to ETH within six hours.
Nine companies were expelled from the ecosystem for failing to respond to requests from law enforcement, the private sector, and their own infrastructure for three years. The $420 million in penalties stems from major public cases alone. The actual figure is likely significantly higher. the expert wrote.
It’s worth noting that Circle has repeatedly frozen USDC funds and blacklisted wallets. In September 2025, the company’s president, Heath Tarbert, announced that they were exploring the possibility of “reversible” USDC transactions, which could be reversed or changed in the event of hacking, theft, or fraud.
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