#Circle拒冻结Drift被盗USDC The issuer of USDC, Circle, was exposed for failing to comply with regulations on $420 million. Is your stablecoin still safe?

Stablecoins have always been considered the "safest" assets in the crypto world. But last week, on-chain detective ZachXBT released a report that made many rethink this perception. The core content of the report: Since 2022, USDC issuer Circle has been involved in multiple illegal funding incidents with "ineffective compliance enforcement," involving over $420 million. This isn't the first time Circle has been questioned, but this time the data is very detailed. What exactly happened with $420 million? Let's look at three specific cases.

First, the Drift Protocol attack incident. On April 1, DeFi protocol Drift was hacked for about $280 million. The attacker used Circle's cross-chain bridge CCTP to transfer over $232 million USDC from Solana to Ethereum within six hours. Six hours. $232 million. As the issuer of USDC, Circle has the authority to freeze these assets. But they did not freeze any of them.

Second, other attack incidents. ZachXBT's report also pointed out that in attacks on SwapNet, Cetus Protocol, Mango Markets, and others, Circle also did not take timely action.

Third, comparing other issuers. The report mentions that compared to other stablecoin issuers like Tether and Paxos, Circle's response to the Lazarus Group (a North Korean hacking organization) money laundering investigations was noticeably delayed.

In other words: For the same incidents, other issuers froze assets, but Circle did not.

Why is this important? What is the biggest difference between stablecoins and regular cryptocurrencies?

There is an issuer backing. USDC is backed by Circle, USDT by Tether. What does this backing mean?

It means that when you hold USDC, you trust that Circle will protect your assets' safety. But if Circle becomes "unable" at a critical moment, that trust will be undermined.

More importantly, Circle is preparing for an IPO. If compliance issues continue to ferment, it could affect their IPO process and, in turn, impact USDC's market position. This is not alarmist talk; it is a risk that needs attention.

What does this mean for ordinary users?

If you hold USDC or use USDC in DeFi protocols, there are a few things you need to think through:

First, is USDC still the "safest" stablecoin? It might no longer be. At least in terms of compliance enforcement, Circle's performance is not as good as Tether and Paxos. This doesn't mean USDC will collapse, but its "safety margin" is shrinking.

Second, should you diversify your stablecoin holdings?

If you have a large amount of USDC in your wallet, exchange, or DeFi protocols, you might want to consider diversification. USDT, USDS, DAI can all be alternatives.

Third, who do you rely on during an attack?

Many people previously believed that USDC was more "compliant" and "safer" than USDT. But this report shows that, at critical moments, "compliance" does not equal "effectiveness."

Having a compliance license and acting quickly during an attack are two different things.

In conclusion

The compliance issues involving $420 million have put Circle in the spotlight.

This doesn't mean USDC will fail, but it highlights that in the crypto world, no asset is absolutely safe.

Stablecoins are no exception.

If you hold stablecoins, what you need to do is not panic but upgrade your awareness. Understand what you are holding, know who the issuer behind it is, and assess their risk control capabilities.

Because when risks arrive, no one will notify you in advance.