Crypto Sleuth ZachXBT Slams Circle (USDC) for Failing to Stop Bad Actors, Sparking Controversy
ZachXBT noted that the USDC stablecoin issuer firm took months to blacklist a North Korean hacker, while the same work should have been done by them within a matter of days.
ZachXBT is a popular Crypto X user. In the crypto community, he is known for his intelligence in tracking crypto transactions and identifying hackers and scammers. In the past, he helped people recover their funds from hackers & unearth ponzi crypto projects.
On 14 Sep 2024, ZachXBT took to X (formerly Twitter) to criticise the second top stablecoin USDC issuer firm Circle. He slammed Circle (USDC issuer) for not caring about the ecosystem at all and just squeezing profits from it. According to this crypto sleuth, a hacker was never blacklisted by Circle after DeFi vulnerabilities.
The Circle team took 4.5 months longer than all other major stablecoin issuer firms to blacklist the funds of the North Korean hacker group Lazarus.
ZachXBT noted that all four stablecoin issuers (Paxos, Tether, Techteryx, Circle) blacklisted the addresses used by the hacker, with $4.96M from Lazarus Group.
Other tweet responses and discussions noted that the top stablecoin issuer Tether (USDT) is much better in such cases, as they blacklist or freeze the hacked funds quickly.
This is a major concern for the crypto space and the future of any crypto firm, where regulatory actions are very common due to the sector’s largely unregulated nature.
Tether vs Bad Actors
Just a few days ago, we reported that Tether firm established a new partnership with Tron (TRX) team and TRM Labs to set up a new Private Financial Crime Unit to fight against bad actors misusing the USDT stablecoin for illicit activities like drug dealing, money laundering, etc.
