ZachXBT accuses Circle of failing to freeze USDC in a timely manner across multiple security incidents, involving more than $420 million

Gate News update. On April 3, on X, on-chain detective ZachXBT posted “Circle Not as an Archive,” accusing stablecoin issuer Circle of having potential compliance enforcement missteps totaling over $420 million since 2022. According to his disclosure, Circle failed to promptly freeze the USDC funds involved in multiple major security incidents, including Drift Protocol (April 2026, losses of $280 million), SwapNet (January 2026, losses of $16 million), Cetus Protocol (May 2025, losses of $223 million), and other cases. In addition, similar delays or failures to execute freezes were also seen in incidents involving Mango Markets, the Nomad Bridge, the Ledger supply-chain attack, and GMX. By contrast, peers such as Tether and Paxos reportedly responded faster in some cases. ZachXBT noted that although Circle has freeze and blacklist capabilities and is regulated in the United States, it still reacted slowly to multiple law-enforcement actions and industry requests, resulting in large sums of money being lost. He emphasized that the figures in question cover only publicly known major events; the actual scale may be higher, and he questioned Circle’s real intended beneficiaries in terms of compliance enforcement.