ME News reports on April 18th, responding to Neeraj K. Agrawal's claim that requesting Circle to act as the crypto world's police is unlikely to enhance DeFi security. ZachXBT stated that equating real-time freezing of stablecoins with DeFi security is inaccurate because publicly traded companies and centralized stablecoin issuers are not part of DeFi. He mentioned a case involving approximately $230 million in illegal funds being laundered over six hours, noting that poor infrastructure and lack of compliance are prime examples. He also criticized the inefficiency of legal procedures that oppress victims, emphasizing that Circle should not switch between centralized and decentralized interests for its own benefit.

MeNews

2026-05-27 17:44:48

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ME News Report, April 18 (UTC+8), in response to Neeraj K. Agrawal's statement that "asking Circle to act as the police of the crypto world does not enhance DeFi security," on-chain investigator ZachXBT responded that it is inaccurate to conflate "whether stablecoin issuers should freeze assets in real-time" with "DeFi security," because publicly traded companies and centralized stablecoin issuers are not part of DeFi. ZachXBT stated that in a "clear and definite" case, approximately $230 million in illegal funds were laundered within six hours; if the related infrastructure and customer compliance are inadequate, this is a very poor example. He also criticized the inefficiency of using legal procedures to pressure victims instead of establishing real-time response mechanisms, and said that Circle should not selectively switch between "centralized" and "decentralized" based on its own interests. (Source: MLion)

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CapitalFlowInATeacup

· 8h ago

ZachXBT's response was on point. Indeed, conflating DeFi and CeFi is a misrepresentation of the concepts.

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ZachXBT states that the issue of stablecoin issuers freezing funds in real-time should not be conflated with DeFi security.

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