On-chain detective ZachXBT accuses Circle of over $420 million in potential losses since 2022.

金色财经_ · 2026-04-03T16:48:04+00:00

On-chain investigator ZachXBT revealed that stablecoin issuer Circle failed to promptly freeze involved funds in multiple security incidents, resulting in significant losses. He pointed out that, compared to peers like Tether and Paxos, Circle's response to law enforcement requests has been slow, raising questions about the effectiveness of its compliance enforcement.

金色财经_

2026-04-03 16:48:04

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Golden Finance reports that on the X platform, on-chain detective ZachXBT posted “Circle Doesn’t Freeze in the Archive,” and, according to his disclosures, stablecoin issuer Circle failed to promptly freeze funds involved in multiple major security incidents, including Drift Protocol (April 2026, loss of $280 million), SwapNet (January 2026, loss of $16 million), Cetus Protocol (May 2025, loss of $223 million), and more. In addition, in incidents such as Mango Markets, Nomad Bridge, Ledger supply-chain attacks, and GMX, there have also been similar cases of delayed or unexecuted freezes.
By comparison, peers such as Tether and Paxos responded faster in some cases. ZachXBT pointed out that although Circle has freeze and blacklist capabilities and is subject to U.S. regulation, it has still been slow to respond to multiple law enforcement actions and industry requests, resulting in a large amount of funds being lost. He emphasized that the relevant statistics cover only publicly known major events; the actual scale is larger, and possibly even higher, and he questioned who Circle actually serves in terms of compliance enforcement.

DRIFT10.21%

CETUS6.76%

GMX-2.95%

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