USDC Issuer Circle Faces Criticism Over Compliance issues
On-chain analyst ZachXBT has voiced concerns about Circle, the issuer of the USDC stablecoin. he claims Circle’s compliance standards are lacking, especially regarding the use of USDC by malicious actors.
ZachXBT alleges that North Korean IT workers are using USDC to move millions in illicit funds.His comments come as Circle seeks a national trust bank charter, which would allow it to manage USD Coin reserves.
The analyst argues that Circle has not taken action against these activities. Despite the visibility of these fund flows, the company has not frozen any involved wallets. “They boast about compliance but do nothing to detect or stop the activity,” he stated.
Circle’s handling of the situation is under scrutiny. The firm is accused of inaction despite knowing about these illicit activities.
Circle’s reputation as a compliance leader is now in question.The firm has been praised for its regulatory approach, but this incident suggests otherwise.Tether, a rival stablecoin issuer, has been more proactive in freezing wallets linked to suspicious activities.
the allegations could damage Circle’s image considerably. the company has not yet responded to these claims. ZachXBT’s findings highlight the need for stricter oversight in the crypto industry.
