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Circle CEO Responds to Controversy: USDC in Drift Hacker Incident Not Frozen Due to "Ethical Dilemma"
Mars Finance reports that on April 13, according to The Block, Circle CEO Jeremy Allaire stated that Circle will not freeze USDC wallets unrelated to legal proceedings.
At a press conference in Seoul, South Korea on Monday, Allaire responded to ongoing online criticism about whether the company should freeze USDC funds during hacking and vulnerability incidents.
The controversy became more prominent earlier this month: decentralized finance protocol Drift experienced an attack of approximately $280 million, which is believed to be related to a sustained six-month attack involving complex social engineering techniques, possibly involving North Korea-linked hacker groups.
Well-known on-chain analysts, including ZachXBT, publicly criticized Circle, accusing it of not freezing about $230 million in USDC funds.
These funds are said to have been transferred from Solana to Ethereum via Circle’s cross-chain transfer protocol.