Circle, darling, finds itself back in the spotlight as the crypto chorus croons, after more than $3 million of USDC languished unfrozen for hours following a SwapNet misadventure.
would Circle act preemptively or await a court decree to “prove” what’s utterly verifiable on-chain?
“Will @circle save this man his retirement savings,” the post asked, “or will they instead demand a US court order to ‘prove’ something which is entirely publicly verifiable on-chain?”
$3,000,000+ of stolen USDC has now been sat in this initial theft address for over 8 hours – will @circle save this man his retirement savings or will they instead ask for a US court order to “prove” something which is entirely publicly verifiable on-chain?@jerallaire?
– tanuki42 (@tanuki42_) January 26, 2026
Blockchain investigator ZachXBT amplified the chorus, dubbing Circle a “bad actor” and questioning the company’s approach to user protection. “Why should anyone continue building on $USDC when you never take care of your users as a centralized stablecoin issuer?” he quipped.
History has shown that Circle is a bad actor.
SwapNet contracts were exploited for $13M USDC on Base ~10 hours ago.
3M USDC is still sitting freezable at
0x6cAad74121bF602e71386505A4687f310e0D833eWhy should anyone continue building on $USDC when you never take care of your…
– ZachXBT (@zachxbt) January 26, 2026
The incident has reignited a long-running debate over the responsibilities of centralized stablecoin issuers, especially during hacks and exploits.
Unlike decentralized assets, centralized stablecoins such as USDC and USDT can be frozen by their issuers, a feature often pitched as a shield against theft. According to Protos, hackers typically attempt to swiftly swap freeze-able assets for alternatives like DAI or ETH, which can then be laundered through mixers such as Tornado Cash.
In this case, the delay is blamed for potentially increasing the risk that the stolen funds could still be moved or laundered, even as they remain visible on-chain.
Why it matters
Circle, the issuer of USDC, stands as one of the globe’s largest stablecoin operators. The company, founded in 2013 and rooted in Boston, has staked its reputation on being a cash- and Treasuries-backed, tightly regulated, and transparent alternative to other dollar-pegged tokens.
Circle has pressed for closer ties with regulators and traditional financial institutions as it broadens USDC adoption across multiple blockchains.
Yet the chorus of criticism returns, viewed by some analysts as slow or inconsistent enforcement. The crypto security community has voiced concerns in past incidents, such as last year’s $42 million GMX exploit and the laundering of funds stolen by North Korean-linked hackers from Bybit and others.
By comparison, rival stablecoin issuer Tether has frozen roughly $1.6 billion in USDT across more than 2,500 addresses, according to data from a Dune Analytics dashboard maintained by AMLBot.
Circle, on the other hand, has frozen roughly $110 million in USDC across fewer than 500 addresses, the data shows.
Read More
- Best Controller Settings for ARC Raiders
- Donkey Kong Country Returns HD version 1.1.0 update now available, adds Dixie Kong and Switch 2 enhancements
- Ashes of Creation Rogue Guide for Beginners
- Sega Insider Drops Tease of Next Sonic Game
- When to Expect One Piece Chapter 1172 Spoilers & Manga Leaks
- Fantasista Asuka launches February 12
- Hytale: Upgrade All Workbenches to Max Level, Materials Guide
- All 6 Takopi’s Original Sin Episodes, Ranked
- Arc Raiders Guide – All Workbenches And How To Upgrade Them
- 7 Best Animated Horror TV Shows
2026-01-27 01:36