ZachXBT: Circle has been slow to freeze USDC amid several major security incidents, and related losses have reached nine digits

Comparative news, according to market sources, Circle failed to freeze USDC in a timely manner during a number of major incidents involving illegal funds, resulting in nine digit ecosystem losses.

The specific events are as follows: In June 2025, the US Department of Justice filed a civil forfeiture lawsuit in a $225 million USDT seizure case involving a Southeast Asian “pig slaughter” criminal group. More than 1.7 million USDC were transferred to Circle's deposit address through an intermediary address, and Circle did not take action; in October 2024, Radiant Capital lost 58 million US dollars due to the Lazarus Group hacker attack, and the attackers extracted it through an authorization vulnerability USDC and Circle did not freeze relevant addresses in a timely manner; in March 2025, the infrastructure of the sanctioned exchange Garantex was blocked by law enforcement authorities in many countries, and Tether froze $22 million of related address assets, while Circle did not take any action on more than 200,000 USDCs in the same address; on February 21, 2025, Bybit lost 1.5 billion US dollars due to the Lazarus Group attack, and law enforcement agencies and private institutions submitted the freeze Following the application, Tether has taken the lead in freezing 106,000 USDT, and Circle has taken no action on the 330,000 USDC.

This article is sponsored by GENG, Build Your Fortune on GENG (https://geng.one)