- The inability to promptly ban wallets implicated in criminal activity prompted the criticism.
- Compared to other large stablecoin issuers, Circle waited 4.5 months before blacklisting assets.
Blockchain investigator ZachXBT has accused USDC issuer Circle of ‘profiting’ from transactions associated with the North Korean hacking outfit Lazarus, and the claims are serious. Web3 investigative star ZachXBT recently blasted Circle and CEO Jeremy Allaire on the social networking platform X. The inability to promptly ban wallets implicated in criminal activity prompted the criticism.
Compared to other large stablecoin issuers, Circle waited 4.5 months before blacklisting assets affiliated with the Lazarus Group, according to ZachXBT. The fact that Circle didn’t do anything to stop the gang from laundering money via its platform was another source of his annoyance.
ZachXBT wrote:
“Not once have you ever blacklisted after a DeFi exploit/hack when there was ample time, while you continue to profit off the transactions.”
Recent Blocking by Stablecoin Issuers
The USDT issuer and other stablecoin issuers banned two wallet addresses associated with the Lazarus Group, which led to these claims. A recent attack on the Indonesian crypto exchange Indodax is believed to have been carried out by the renowned organization. Which has been involved in several crypto breaches. On September 11, the hack took place. The loss of almost $20 million caused the exchange to briefly close its doors while it investigated the incident.
Deposit, withdrawal, and staking facilities were progressively restored when the Indodax exchange reopened for trades later. Two addresses linked to the Lazarus Group have been banned by four major stablecoin issuers. These issuers also include Circle, according to ZachXBT’s research.
ZachXBT earlier said that between 2020 and 2023, hackers from North Korea transferred over $200 million into stablecoins like USDT and USDC from diverse hacks.
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