Controversy: ZachXBT claims Circle froze legitimate wallets while failing to stop major USDC hacks

Onchain investigator @zachxbt posted a detailed thread alleging compliance shortcomings at @circle, saying the company has failed to freeze more than $420 million in illicit USDC flows since 2022. He pointed to the @DriftProtocol exploit attributed to North Korea's Lazarus Group, alleging attackers bridged over 232 million USDC via Circle's own infrastructure over a six-hour window during U.S. business hours without any freeze. ZachXBT also cited a March 2026 civil case in which Circle froze 16 wallets tied to legitimate businesses. He said he personally holds USDC, but questioned whether Circle's compliance priorities reflect the scale of losses the crypto ecosystem faces when action is delayed.