Other reports detail thefts ranging from $200,000 to $223 million. Issuers delayed freezes for up to 4 months, while some never froze addresses associated with bad actors at all.
Source: X
One user noted the irony in Circle’s inaction, saying that blocking these addresses would have acted to their advantage.
Regulatory infringement in the crypto industry
Circle is the latest notable crypto player allegedly defying regulatory mandates related to illicit fund flows. Others are Binance and, even the Trump-associated World Liberty Financial, both being accused of Iran-linked flows.
The news brings into question Circle’s trustworthiness, especially considering that USDC is the second-largest stablecoin globally. The company had also reported building a compliance engine in 2024, but its use seems to have fallen through.
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