ZachXBT accuses Circle: Has not promptly frozen some involved USDC since 2022, involving over $420 million.

WuSaidBlockchainW · 2026-04-03T13:59:56+00:00

On-chain detective ZachXBT revealed that since 2022, Circle has failed to promptly freeze more than $420 million worth of lockable USDC in at least 15 illegal fund incidents, including attack cases such as Drift, SwapNet, Cetus, and others.

WuSaidBlockchainW

2026-04-03 13:59:56

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According to on-chain sleuth ZachXBT, his “USDC dossier” shows that since 2022, Circle has failed to take timely action in at least 15 incidents involving illicit funds to partially freeze the funds, with a total amount exceeding $420 million. Specific cases include: in the 2026 Drift attack, the attacker used CCTP to cross-chain transfer about $230 million in USDC, remaining unfrozen for roughly 6 hours; in the 2026 SwapNet attack, about $3 million in USDC stayed in an address for two days before still not being handled; in the 2025 Cetus attack, about $61 million in USDC was added to the blacklist only a month after crossing chains. In addition, in incidents such as the Nomad, Mango Markets, Ledger supply-chain attacks, and GMX, there were also instances where USDC could be frozen but was not executed in a timely manner.

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