ZachXBT Releases 'Circle Files,' Accuses USDC of Failing to Comply with Issuer Rules

Bittime - The spotlight on the crypto industry is back in focus after blockchain researchers ZachXBT released a report which he calledCircle file. The report sparked debate as it highlighted the alleged failures of stablecoin issuers.USDCin response to a number of major hacking cases.

This issue isn't limited to a single incident, but encompasses numerous cases since 2022, with significant losses. Amid the growing role of stablecoins in the digital financial system, these findings are a serious concern for industry players and crypto users.

Key Points

• ZachXBT highlights alleged negligence of USDC issuer in multiple hacking cases
• Circle files record over $420 million in crypto-related funds
• Slow response is said to increase the potential for loss

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Circle Files Reveal Alleged Compliance Failures

In a report shared via social media,ZachXBTmentions that there are more than 15 cases of crypto hacking involving USDC. Total value highlighted inCircle filereaching over $420 million since 2022.

According to him, in many of these cases, USDC issuers were deemed slow or inadequate in taking action against funds suspected of originating from illegal activities. Technically, the USDC system has the ability to freeze assets suspected of being problematic.

One example cited is a major hack involving a crypto exchange. In that incident, the freezing of funds was reportedly slower than for other stablecoins, despite requests from the relevant parties.

Read also: List of 15+ Euro Stablecoins 2026

Drift Case Becomes Latest Spotlight

The latest case that strengthens criticism in Circle file was a hack on the Drift platform. This incident caused losses of hundreds of millions of dollars, with most of the funds in the form ofUSDC.

In this incident, the hacker moved funds gradually over several hours through a cross-network transfer system. According toZachXBT, no funds are frozen during the process.

This situation is considered to complicate asset recovery efforts and impact various other projects connected within the same ecosystem.

The Dilemma Between Speed ​​and Compliance

On the other hand, publishersUSDC They state that they operate in accordance with applicable laws. Asset freezing is only carried out upon official orders from authorities or legal institutions.

This approach presents a dilemma. Acting quickly without legal basis can create legal risks, while delays can open up opportunities for criminals to move funds.

Some consider this situation to be a gray area in the crypto industry, where decisions are not only technical but also legal and ethical considerations.

Read also: What Is USDu? Getting to Know the Productive Stablecoin from the Unitas Protocol

Impact on the Crypto Industry

The case revealed inCircle filehighlights the increasingly complex challenges in management stablecoin like USDCOn the one hand, these assets are designed to be flexible and controllable. However, on the other hand, users expect certainty and consistency in their implementation.

Recent data shows that stablecoin transactions are also frequently used in illegal activities, increasing pressure on issuers to act more quickly and decisively.

This debate is expected to continue as the use of stablecoins in various global financial activities increases.

Read also: ARSE Digital Price Prediction – Analysis and Prediction

Conclusion

Report ZachXBT through Circle file opening up important discussions about the roles and responsibilities of stablecoin issuers such asUSDC. Amidst the growth of the crypto industry, transparency and speed of response are becoming increasingly crucial.

However, this case also demonstrates that not all decisions can be made quickly without considering legal aspects. Going forward, clear regulations are needed to avoid uncertainty that could harm various parties.

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FAQ

What is a Circle file?

The Circle file is a report released by ZachXBT containing alleged compliance failures related to USDC.

Who is ZachXBT?

ZachXBT is a blockchain researcher who frequently uncovers hacking cases and suspicious activities in the crypto world.

What are the allegations against USDC?

USDC has been accused of being slow or not fast enough in freezing the hacked funds.

Why doesn't USDC just freeze the funds?

Because freezing assets usually requires a legal basis or order from an official authority.

What impact does this case have on crypto users?

This case raises awareness of the importance of security and transparency in the use of stablecoins.